What is Small Business Administration?
A Home Business Article Contributed by Fiona Mclaren
Fincancial Administration for the Small Business
If your run your own small, home based business, you will have to get to grips with your financial administration very quickly. Financial administration is perhaps one of the most crucial areas of administration in your small business. Make sure that you get a thorough grounding in financial administration BEFORE you start your own small, home based business.
Financial administration can be broken down in to three key areas. The first area looks at your income and profit margins. You have to understand how much money your small business is generating. This will show you where you need to work harder, which products you need to improve, and where you need to focus your attention.
The second area is your expenditure. You need to keep an eye on what you are spending. It is all to easy to spend more than you earn if you don't keep an eye on the bottom line. Make sure that you chart your business's financial outgoings so that you can tell how much profit you are making AFTER expenses.
The third area is your small business's tax. Every small business has to be aware of what tax they are liable to pay. Make sure that you keep your paperwork up to date and accurate, in order to stop yourself from getting lumped with heavy penalties and fines.
Stock and Inventory Administration for the Small Business
If you run a small, home based business that deals in products as opposed to services you will no doubt have to learn what administration you will need for your stock and inventory.
Stock and inventory paperwork can comprise of customer orders, stock deliveries, refunded goods, damaged products, and stock balances. Stock and inventory administration focuses on the physical products you have in store, and it charts their progress and status within your business at any given time.
Accurate stock and inventory administration can prevent you from over buying, or under buying. It means you won't have too much or too little stock. It is important that you track your stock and inventory daily, as you can't afford to be caught without enough stock to supply to your customers. If you can't supply what your customers want then they will go elsewhere.
Communications Administration of the Small Business
The third area that you should concentrate on when dealing with your small business's administration is the communications and correspondence paperwork in your company.
Your small business will be in contact with clients, customers, vendors, and suppliers on a daily basis, and you will need to keep track of your communications with them. This stops you from having to rely soley on your memory when dealing with business associates. By keeping a record of all of your communications, you ensure that nothing gets missed.
Communication administration is a vital aspect of running your own small, home based business. You need to know who you have talked to, and when, in order to maintain a professional business appearance at all times.
