Ask yourself this simple question: How do you make money?
You may be surprised at the answer. Many entrepreneurs provide more than one kind of service. Therefore a income account should be created for each stream of income.
An income stream is defined as a regular and continuing flow of money generated by a business. For example, you primarily provide web design services, but you may also get commission from hosting sites. Then you need to add a “commission income” to track all commissions received.
Also if you ever called upon to do consulting on a project or business and you are paid for it, then you would want to classify that income and consulting income.
As you generate income in different areas, you can see where are your money makers and then you want to re-focus your energies to where the money is or isn’t.
There are a few new cheap and sometimes FREE accounting and time management tools that are part of the Web 2.0 explosion. You may want to incorporate these to help you manage your business.
Blinksale is great for quick invoicing. I have used it to send invoices to my bookkeeping clients and it faciliates PayPal payments. The only downside is that you can only send three invoices a month for the free version. If you like it, I suggest upgrading to the next level which is only $12/month.
Freshbooks.com offers a similar service but it is not as efficient. More detail for clients has to entered, but they do offer to send in the mail an actual hard copy of the invoice.
MyIntervals is a timetracking application that is great for project management.
Wesabe is more for personal finance but since many of my clients are micro-businesses, it’s a definitely worth a look. I heard that people use Wesabe to see what checks have cleared and what the current balances are for her credit cards.
One of my resolutions this year is to “work my network”. I am connecting online using LinkedIn.com. Offline connections are made with meetings with the Career Women’s Initiative and next week’s LikeMind. I have met so many wonderful and brilliant offline and I want to continue the connection online with email, blogs, and social networking. It’s a great way to make the world seem more like a small town. Local is the new global.
A two-part article in the USA Today counts down the top ten business trends which inlcude Web2.0 and “little is the new big”.
Small Business owners need a day off. Finding a work-life balance should a goal for 2007.
One of the reasons entrepreneurs/micro business owners need a day off is because they don’t want employees. Techonolgy advances have made it easier for microbusinesses manage without a full-time employee.