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By Ken Kaufman

Start-Up companies do not need theoretical or impractical advice. They need tips and suggestions that they can easily and swiftly implement to improve their chances for success. In the spirit of this need, here are ten tips in the areas of accounting and finance that they should consider implementing in a hurry:

1. Entity selection – I am asked about this a lot. It is always wise from a cost-saving perspective to run as a sole-proprietor when you first get started. However, it is not wise to remain that way for too long. Some of the potential triggers to incorporate or organize an LLC include:

• bringing on partners or investors
• gaining your first and subsequent customers
• adding employees and/or contractors
• protecting intellectual property and personal/other assets
• planning for taxes.

One other point to make in entity selection – creating an entity is about setting up a legal structure and, in my opinion, does not mean you have created a business. Getting customers to accept your promises and then receiving payments from those customers when you keep or deliver upon your promises constitutes a real business. Focus on getting customers, then you should spend more time worrying about your legal entity.
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By Jared D. Ingram

Cash flow is very important in any form of business. It is the essential component that makes or breaks a business. Through it, you can tell if a business is successful or not. Usually the cash is derived from gross revenue, solicitation of account payables and also the selling of properties. It is your cash flow that meets all of the expenditures as well as financial obligations of a business.

Positive cash flow management is important because it gives you sufficient cash on hand in times when you really need it the most. Most businessmen fail to recognize the importance of cash management in a business. They think that the business will be successful as long as there is plenty of cash coming in. But it is not true since a business also deals with some expenses for it to operate properly. Without proper cash management, the business is put at a high risk particularly with so many cash hazards.

For that reason, it is necessary for any business investor to learn positive cash flow strategies. These strategies give assurance to the business that there is an adequate amount of cash on hand to manage its financial obligations. If you have enough cash, it would be easier for you to get funds from outside sources whenever you need it. A cash flow deficit could lead to some financial trouble or bankruptcy.

But if you want to avoid any financial embarrassment, there are some ways on how you can double up your cash reserves such as the following:

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