As a business owner, nothing is more threatening than to realize all too late that your financial resources are depleting. After all, a regular cash flow is but one of the basics of keeping your business on solid ground. Fortunately, you can do something to avoid financial blunders. Have you tried dipping a toe in the water by mapping out your business budget? This way, you can significantly improve your cash flow and reduce budget deficits.

Making an inventory is like having a garage sale – you check what you have and try to sell as much as you can. A definition 1 of an inventory is “an asset that is owned by a business that has the express purpose of being sold to a customer, in the form of raw materials, work in process, and finished goods.” Managing your inventory well is beneficial to you as an SME. A low inventory level could delay the delivery of your goods, while an excess in stock could hinder your cash flow.

The contemporary business setting in the US calls for a basic understanding of Generally Accepted Accounting Principles (GAAP). As a standard set of accounting rules and norms recognized by American entrepreneurs, established businesses in the country adhere to the regulations set in the GAAP without hesitation. But how about small business owners? Given their limited client network and a business cash flow that is considerably less complex than growing enterprises, do they still need to follow GAAP procedures?