Full-steam ahead: how to build a solid foundation for small businesses.

• Author: Ribeiro, Ana Gonzalez
• Position: FINANCE

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A new entrepreneur might have a great idea for a product or service, but if this person doesn't have the self-esteem to make it work, it won't. You have to believe in yourself. You have to believe you can succeed in this endeavor and if you come across a wall in the path to your goal, you will have the ability to figure out how to get around that wall.

Starting a business can be a difficult and oftentimes daunting task. A business owner needs to be optimistic, have drive and self-confidence, and the skills necessary to run a small business.

THE ART OF RECORDKEEPING

Recordkeeping and setting up financial reports that portray a business accurately is one of the most difficult yet important tasks for the success of a business. There are many ways businesses can keep accurate records without pulling their hair out. From hiring a skilled bookkeeper or accountant to using a computer software program, managing company finances can become just that, more manageable.

Unlike years ago when recordkeeping for a business was done by hand, now, one of the first things you need when starting a business is a computer equipped with the latest software. Quickgooks and Quicken Deluxe are the most commonly used software by small to medium-sized businesses.

These programs are easy to learn, reasonably priced and help track inventory to payroll functions. These software programs also can help you create checks, invoices, track sales and expenses and keep a record of customer contacts. For tax preparation, Intuit Turbo Tax is the software most commonly used. If you want to brush up on bookkeeping skills, cash management or financial statement preparation, attend college courses at a community college. Enroll in entry-level classes that teach the basics of small-business accounting, or if you have some knowledge, take an intermediate or advanced course.

OUTSOURCE OPTIONS

If you would rather not use the "do-it-yourself" approach, there are companies that specialize in accounting outsourcing services that allow you to pass your company's bookkeeping responsibilities on to experienced professionals. One of the cons of this type of service is that it can be more expensive and when starting out a business from scratch, generally, owners are struggling to keep their costs low. Another option is using an outside accountant to go over financial documents. This is an advantage because you don't have to worry about the tax implications of your...