How to monitor a home based business through accounting

accounting is important for home businessA home based business is operated under either of these two circumstances:

One, at home; that is, most of the business’ work is carried out at home. An example is a dressmaker who does all the work at home with clients coming to pick their fittings there.

The other circumstance is when the business is carried out from home. This kind of business does not rent or own any premises other than the owner’s home.

Accounting for a home based business

Accounting helps the business owner to keep track of the business and plan on how to improve its performance. Is the business making a profit? Is he collecting debts quickly and efficiently? Are bills settled on time? Most importantly, is the cash flow improving or deteriorating? There are various aspects of business that enable the business owner to do effective accounting. These include the following:

  1. Cashbook – a separate bank account should be opened for the home based business. The business owner will then need a system for recording all transactions; that is, receipts (money in) and payments (money out). This forms his or her cashbook. A cheque account and savings account can also be opened. A cash book can either be manual (a 16 column A4 book from a stationer) or a spreadsheet such as Excel. A spreadsheet has many advantages over a manual cashbook. Calculations on it are simpler and more accurate, entries that could have been forgotten can be added later and it does not require a lot of storage space. It is also less tedious and it allows the user to design the book in any desired style.
  2. Computerised accounting systems – these are available online at varying prices, with most of them being database systems that prompt the accountant for entries and offers a choice of different reports to be printed from the data entered.
    Cashflow Manager Cloud is an example of an online accounting system used for small to medium-sized businesses. It is a powerful tool but simple to use. Since it is online, the owner of the home-based business does not have to install any software on his computer.
  3. Record keeping – the home-based business owner should keep supporting documentation to the summary of amounts in and out of the business provided by the cashbook. These records can be kept electronically to save on space. The documentation includes:
    – Receipts of all payments
    – Copies of tax returns
    – Bank statements
    – Other documents relating to the business

Why is accounting for a home based business very important?

Through accounting, the home based business owner is able to record the business’ performance in financial terms. It translates all business activities into numbers that are then organized into different reporting formats – such as business financial statements.

Every real activity of the business is ‘accounted for’. A lot can be told about the business by reading these statements and forecasts about the future of the business can be made.

In summary, accounting helps the business owner to monitor the performance of the home based business. When he uses accounting to record all the business activities, then turn the records into the correct formats, it is possible to get very useful information about the business. It is important to remember that accounting knowledge is often needed to benefit fully from accounting. Such information is ubiquitous in the internet in unlimited amounts. But working with an accounting professional is also a great way to make the most of managing your business.

A Good Home Business Website is Essential

Your website is a great marketing toolEvery business, even small and home businesses need a good website. These days, with new technology such as WordPress and other content management systems, a website is cost effective and easy to create. There is no excuse for not having a good home business website.

Here are 3 prime reasons you need a great website:

Access a much wider market than your home business normally could

A good website is working for you 24 hours a day, 7 days a week and transactions can take place round the clock with visitors from around the world. This would be impossible from a physical location. In many cases, many home businesses are now entirely online operations because of these benefits.

A website is also a great way to provide all the information potential customers need about your products and services removing the need for written correspondence in the form of letters or emails, or other forms of contact. It is convenient for customers as well when they can easily make decisions based on all the material you provide them online.

Mobile is also changing the way people do business as people today often use their smartphones and tablets to search the internet while on the go. So make sure your website is mobile ready.

A home business website is an inexpensive, but effective marketing tool

A small home business can have a website that is just as professional and powerful as a large company. It puts you on an even footing. A good website adds credibility to your business. Even though your business may be small, the quality and appeal of your website can win you customers because of the increased confidence they have in you.

As I have already said, today’s technology means that a website does not have to be cost prohibitive. There are many tools that enable savvy people to do it themself. But even if you don’t want to do that, but you cannot afford a local developer, consider outsourcing through sites such as Elance or ODesk where you will find freelancers that are very inexpensive.

A website advertises your business to anyone using the internet at any time. Using SEO (Search Engine Optimization) helps people find you in the search engines searching for products and services that you offer. You can even advertise on the internet using Google Adwords and similar services and this can often be significantly cheaper than other forms of advertising. The good thing is that you generally only pay when someone clicks on your ad so unlike print, radio, TV and other forms of advertising, you are paying for results.

A home business website can improve interaction with your customers

An effective website gives you the ability to communicate with customers and prospects. You can have email contact details on your site but even better still, you can have a ‘chat’ plugin on your site so you can interact with potential customers while they are there on your site. This is a great opportunity to make the sale while your prospects are hot, and lead them to the information they are seeking to make a decision.

Some areas where this can be effective include:

  1. Customer support
  2. Analyzing visitor behaviour
  3. Conducting visitor surveys
  4. Standardizing sales and support messages
  5. Improving customer relations

In summary

A good website gives you opportunities to brand your business and market it cost effectively, as well as increased opportunities to grow your sales and communicate with customers. A good website is an essential tool for every home business.

Marketing Ideas for a Small Business – Part 2

small business marketing ideas meetingAs promised and following on from my previous post, below are a few more ideas when it comes to marketing your small business.

In this article we are going to focus on how to bring your business name and product to the attention of your target audience.

Content marketing

Another effective way to market your business and attract more customers is by generating content that is of a high quality standard and relevant to your audience. This type of marketing if well executed can turn out to be a valuable tool to your marketing game plan. If you want better results, you can produce different types of content like videos, webinars, or articles and divide them out on a number of channels.

Choose to be active on social media

Most of the small businesses have a profile on the popular social networks like Twitter and Facebook although this alone may not be able to give your business greater marketing. For you to be able to maximize the advantages of social media you need to keep your profile fresh and up to date with new information.

Post content consistently but only a few times in the week. This leaves your audience with the urge of reading your next post. In addition, ensure you engage actively with your audience by following user’s posts, sharing images, tweeting back as well as liking other users content.

Marketing a small business using videos

Video has increasingly become popular with consumers because of how they offer a successful way of marketing any business. A small growing business can use a video in many different ways to market its business. Research has shown that many people are easily persuaded to buy a product if they see a video of what you are offering them.

Marketing a small business is not as easy as many may think but it is also not impossible. With the right marketing strategy, your business can reach its peak. For your business to be successful, people need to know about your products and services as well as your brand. This is where a good online marketing strategy comes in handy.

For more marketing know-how visit

Marketing Ideas for a Small Business – Part 1

Home Business Marketing TipsThe biggest challenge entrepreneurs and business owners encounter is marketing a small business effectively. There are thousands of marketing techniques to choose from and finding the ideal approach for your small business can seem like a daunting task. It even gets more challenging with the limited budget small businesses have to work with.

Below are some strategies that can help bring your business to its peak.

Look at blogging in a different perspective

Blogging is a powerful tool for marketing your business. Creating your own blog may take time but you come to realize that the results are worth the efforts. For your blog to be productive, you will need to invest some of your precious time in writing quality content. You can do this on a weekly basis.

The more you increase your publishing frequency, the more the benefits of your blog increases. This is a perfect way of creating trust in your business. Actually, businesses that blog consistently generate more leads than those that do not.

Email marketing

It is never too early to start building your email list, you can actually start from day one. You can be surprised how a simple email sign up request form on your website can give unimaginable results. Use incentives such as an eBook or newsletter to lure users to sign up to your list.

Get insight from other businesses

Study how other successful businesses related to your business made it to the top. You can learn something by looking at their social profile and websites. Take advantage of any competitive analysis tool that can help expand your business. Do a research on the competitors of your brand. This will help you get insight on new strategies and methods to market your business or you will be able to get inspiration.

Take advantage of competition

You can effectively market your business by running a competition. Offering a captivating prize or award is a good way to attract customers. It also makes your brand a talk of the town and you definitely know what this can do for your business.

You can use social media sites such as Facebook to promote your competition and you can also generate more leads by attracting new followers for your business.

Make your site available to mobile users

With the latest innovation of smartphones, many people can’t bear to go a day without using this device. By ensuring your website is mobile optimized, you can be able to reach millions of people through mobile internet. A wise thing to do is to create a responsive website that can instantly scale to fit a mobile phone of any size.

I will follow up with a few more ideas in our next post. For more about what marketing is, have a look here

Stay tuned…

Accounting knits the home business together

 Accounting is important for a home businessAccounting refers to the measurement, communication and processing of monetary information in relation to economic entities such as businesses. Many accounting experts simply refer to it as business language.

Accounting practitioners are referred to as accountants and, as you can read below, it is important to ensure your accountant has the right experience and credentials.

Accounting is divided into a number of fields, some of which include:

  • Financial accounting
  • Management accounting
  • Tax accounting and
  • Auditing among others.

To start with, financial accounting deals with the financial information reporting of a company. Financial statement preparation for outside users is also done by this department. This is generally to the suppliers, regulators and investors.

Management accounting basically deals with measurement and analysis as well as information remittance to be used by the internal management. The proper keeping of the monetary data so that their summaries are showcased in reports is what is referred to as bookkeeping. In this field of study, many companies embrace the use of a double-entry system.

It is also important to recognize that accounting organizations are the ones that facilitate accounting for small businesses and expert advice for larger organizations that have their own internal accounting departments. Such organizations and their principals are generally members of professional accounting bodies. A major role of accounting firms is simply to audit the financial statements for larger companies. Auditing is done based on the general acceptable accounting principles.

Accountancy is one of the lucrative courses students should yearn for in the near future since it has a lot of value in every organization. It is the accountant who puts checks and balances in place for financial management to ensure that a business does not collapse.

With small and big businesses alike there are important considerations that should always be put in place before a home business hires the services of any accountant. Here is a glimpse of some of these factors:

Professional Accreditation

This is one of the most important factors to determine before hiring the services of any accountant. A client or employer needs to hire an accountant who is fully qualified for the task and the accountant of choice should be a member of a professional organization. It is a fact in this day and age that some people can deceive by representing themselves as bookkeepers or accountants even if they don’t have a clue about accounting principles.

Experience in Accounting

This is also a major factor to bear in mind before employing any accountant. He or she should be able to demonstrate that he or she has been in the field for quite a long time and therefore demonstrates vast experience in accounting.

Assess Referees

Find references and determine what other people have said about him or her. If you are employing someone for an in-house role, assess the referees listed in the resume.

Accounting is a very critical department of any company and particularly home business where every dollar counts. It is the discipline that knits the whole business together. It is therefore vital to engage an accountant who is both highly skilled and highly reputable and specializes in accounting for home business.

Ideas to Build A Successful Work From Home Business

Build A Successful Work From Home Business With These Useful Ideas

ideas for a successful home business
Image courtesy of arztsamui /

Starting a business from home can be a fantastic way to generate some money especially when you have time available that would otherwise be spent unproductively.

When the bills start piling up and you just can’t seem to make ends meet you might think initially about supplementing your income by starting a home business that might even end up becoming such a success that you never think of changing. One option open to you is to start an online business, and hopefully these tips will help you no matter what business you choose.

In fact, here is an article that talks about the 10 best home business ideas.

If you feel yourself getting stressed in your home business enterprise, take a breather. Sometimes when you work from home, it is easy to forget to take breaks. It’s easy to get engrossed in your work and working from home actually makes it harder to take proper breaks. But you need to schedule in 10-15 minute breaks to relax, especially when something stressful is happening. You’ll revisit the problem with a clearer mind and solve it more productively.

Find inexpensive ways to advertise your home based business. If you are help small business owners with their internet marketing, drop some flyers and business cards off at local business. Many shops, post offices and community centers often have notice boards you can advertise on. If you want to enjoy an increased demand for your services then also try to be creative!

The internet is a great way to source products that you can sell to people in your local area as well as to take your products to people around the world. It is a very easy way to create a real store without the investment of a physical store front and the costs that go with that.

In every business you need to carefully study your competition. review their pricing and understand what makes them different and why they have set their prices that way. In almost every market there are businesses whose focus is on being the cheapest, those that have premium prices and those in between.What strategy will you adopt and why?

By the way, we would recommend that you never put down your competition and say negative things about them. For a start it forms a negative impression in your customers minds but competition brings out the best in different businesses and every business should find what makes it unique to draw customers to them. Never be afraid to promote your own business, your products’ features and benefits, and how your customers will benefit from doing business with you.

Get the right software for your business to make your life easier. Proper software, including things like accounting software, PDF creation software, and industry-specific software packages not only make you more productive and more profitable, they also make it easy to comply with regulations and pay your taxes. Most business software also has free and cheap alternatives should you lack money.

Needing the cash is certainly a great reason to attempt to start a home business, but it’s far from the only reason. Regardless of your particular reasons, however, the important thing is that you work to apply accurate information and proven tactics so that you can be successful. Use what you’ve learned here to help you get there.

Welcome to Ginger Knits Blog

Welcome to our blog.

Why Ginger Knits? Well, I love Ginger Meggs and I like knitting. In fact, because business is another passion of mine I would like nothing better than to have a business focused on knitting clothing for children like Ginger Meggs.

(Ginger Meggs is a cartoon series started way back in 1920 about a red-haired young mischief-maker who lives in an inner suburban working-class household. It has been a long running comic series in Australia and was also made into a film in the 1980s.)

That’s probably never going to happen but in the blog I plan to spin a few yarns  about business and hopefully provide a few pearls of wisdom along the way.

I hope you enjoy it.