161, RE: Cold feet!! Panic attack|
Posted by lisasgourmet, Thu Feb-15-07 10:33 AM
What was suggested to me, was your expenses (utilities, etc.) should increase at the same or a tad more than your projected increase in revenues.
For example, if you project a 3% yearly increase in revenues, your expenses would increase at that rate also.
The $500 you have alloted for expenses -- is that miscellaneous expenses? The unexpected monthly expense? If so, that could be feasible.
You can use whatever accounting system you want, however, it should be compatible or at least exportable (is that a word?) to what your accountant is using ---- if you are using your accountant for financial reporting to feds, state & local agencies.
As for incorporating, you do that when it is necessary. Have you talked with a Small Business Development Center or SCORE rep yet?
Accountants tend to push you towards what will make them more money.
Your focus needs to be on controlling your expenses, while maximizing your profits.
As for your auto expenses --- experience with my plan says that you should take what you believe them to be and add about 5% to them for them to be realistic. With the ups and downs of fuel costs, you ahve to be prepared in your paln to allow for that flucuation.
Inflation (from what I have been told) should be relative to cost of living increases (3-4% yearly).
I hope this info helps --- I'm just passing along advice I was given for my plan.