I've completed our business plan and the chartered accountant has made some recommendations;I'm panicking and thinking this is getting wayyy to complicated for me.
Here are suggetions from accountant: -inflation in expenses -familiarize myself with Simply Accounting (was going to use Quick Books) - Incorporate ( I don't want to yet) - My automobile expenses are too low. We are a mobile service offering upholstery repairs; includes leather, vinyl, and fabric. We also do redyes'
I put in $500.00 per month for expenses. What is realisitc? We will be in a community of 335,000 and hope to be extremely busy. I will be out in my car marketing while my husband does the labour with his vehicle. Also, what do you allow for inflation? A percentage? This is a 5 yr plan that I've done. Any help or suggestions would be greatly appreciated. Thanks!
#1. "RE: Cold feet!! Panic attack" In response to Reply # 0
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.
I did a bit of snooping online and found a report done by Revenue Canada and guessed at how many KMs per day we would put on vehicles. (We're in Canada) It's up from $500.00 to $720.00 per month. We are home based so our costs to operate the business are low. We also working a mobile business so no leases, etc.
I like the 3-4% cost of living. I like the looks of your website and i LOVE CHEESECAKE!! I'm on a diet !!! ruh roh!!! LOL Thanks again Sheila