Personal Finance Oct 04, 2015 10:06 PM EDT

Entrepreneurs' Financial Checklist

By Staff Writer

Entrepreneurship is a big jump for someone to pursue rather than having the normal working hour. Besides focusing on the business aspect of the company, entrepreneurs also need to brush off in their financial apparatus as it will determine how well an entrepreneur could sustain his or her life. Hence, it is a wise decision for an entrepreneur to create a finance checklist for himself.

The financial checklist will help an entrepreneur to cover all the important finance aspect. This includes taxes, insurance, loan, retirement, and backup financial support. Garret Gunderson of the Wealth Factory provided a rough checklist suitable for all entrepreneurs. The first on the list is taxes, as most entrepreneurs pay less attention to this detail since most of them, are not from accounting background. The result; either the entrepreneur is paying too much or too little taxes.

Entrepreneurs should be aware that they are eligible to apply for the S-Corp taxes rather than using the usual W-2 employee as they can save thousands of dollar from there. The S-Corp will help businesses to deduct their payroll taxes. Among the aspect, businesses should be aware is the business loan interest, recording the self-employed insurance properly, and also cut on the business transportation taxes including much more according to Forbes.

The best way to be mindful about taxes is by building an annual operating plan as stated by Bloomberg and this is the second item on the checklist. The annual plan will help businesses to record all the budget and expenses of the company. This will encourage business to know which item can help them to cut on taxes besides creating a financial goal for the company.

Another item on the checklist is that entrepreneurs should be well prepared for the bad times. This includes putting some money into a personal financial instrument and buying insurance. Insurance will help to cover businesses' bills when entrepreneurs are unable to work for a certain period if they are injured. Insurance will also help entrepreneurs to protect their employee. A great insurance that entrepreneurs should consider investing in is the Business Owner Policy as it will cover all the basic needs.

The final item on the checklist is funding. Entrepreneurs should seek a funding to help them getting a jump start in their businesses, either for recruiting or paying vendors for their products. Entrepreneurs should monitor their D&B score as this will help them to get funding easier. Obtaining government or bank business loan, line of credit and even interest rates cut will depend on the D&B score.  

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