Maintaining business records is a must for any small business. Keeping good records ensures that your business runs smoothly and efficiently, and that you’re prepared when tax time rolls around. Many businesses have experienced crippling issues that compromise business success when they ignore basic recordkeeping practices. Here’s a primer on small business recordkeeping and why […]
Business Documents
How Long Should I Keep My Tax Records?
Now that you are filing away your business or personal tax records for the year, you may be wondering just how long you need to keep those records. After all, your filing cabinets and storage boxes can only hold so much stuff, right? The IRS offers some specific guidance on this subject. Here’s a look […]
What’s the Minimum Information to Give Your Investors?
Every investor wants regular information from companies taking their money. And most of us investors are frustrated by the lack of regular communication—unless, of course, the company needs more money. On the other side, entrepreneurs and CEO’s usually have a natural fear of giving too much information to us investors after the initial investment is […]
3 Financial Statements Companies Need to Understand
There are three financial statements that every company needs to understand, review and produce, on an annual basis, at a minimum. These consist of the Profit and Loss statement (P&L), Balance Sheet (BASH) and the Cash Flow statement. The profit and loss statement, also commonly known as the income statement, shows the changes in the […]
10 Types of Paperwork You’ll Need to Create for Your Business
Nobody likes to think about the paperwork and documentation necessary to run a business, but your company won’t get far without these practical necessities. Thankfully, for most types of paperwork, this is a one-time process; once you have a core template in place, it will only take a few minor modifications to make it work […]
Documents Required for Corporate Entity Formation
Forming a corporation can be an exciting time in the life of a business. It can also be lots of work. In order to become a corporation, your business will need to file documentation in the state of your choosing. You can file documentation for your corporation in any state you want. Some states have […]
Covenant to Non-Compete: What Are the Rules?
As a general rule of thumb, every franchisor will want to build a non-compete into their Franchise Disclosure Document (FDD). Once you give a franchisee the complete playbook to running and operating your successful business model, you don’t want them to turn around and start running their own offshoot. Which is where the non-compete comes […]
Red Flags in the FDD: What to Watch Out For
So you’ve found a franchise you want to buy into and are eager to jumpstart the process. Then comes navigating all the paperwork. At this point, you’ll be introduced to the Franchise Disclosure Document (FDD). If you’ve never studied law, this is likely the most legalese you’ve ever seen. Despite the complexity, this document is […]
3 Small Business Financial Statements You Need to Know
When it comes to financial statements for business management, small business owners tend to fall into one of three categories: Small business owners who have their financial statements completely in order and use them to drive a thriving company. Small business owners who understand how financial statements work but are too busy to fully apply […]
How to Read the FDD’s Financial Performance Representations
Let’s be frank for a moment. The Financial Performance Representations, item #19 in the FDD, carry serious weight in determining if you purchase a franchise. It addresses the burning question driving every prospective buyer, “How much will I make running this franchise?” Yet, the complex financial performance representations displayed in the FDD are anything but […]
