You're not alone. Many Americans avoid taking the big plunge because of the fear that their ignorance of business accounting and financial management will get them in trouble. Unfortunately, many small business owners hate financial planning and tend to underestimate or ignore this critical aspect of operating a business. Schuldt says that by adopting some basic financial planning tips from the beginning, they can avoid many money management mistakes. The key, he says, is planning.
Financial professionals agree that having a business plan is absolutely essential.
A business plan contains the financial goals of a business and details how the business intends to meet those goals. If you're a one-person shop, you may be able to get by on a simple mission statement and earnings goal. Separate Business and Personal Finances. Baby boomer, if you're one of the 75 percent of Americans that hate financial planning, managing two sets of financials may seem tedious, unnecessary and overwhelming. Tax planners and accountants warn against combining personal and business finances because it complicates tax deductions and potential reimbursements.