Keep Things Simple
Let me share one last comment about managing small business financial affairs: Keep things as simple as possible. In fact, keep your business affairs simple enough that you can easily tell whether you’re making money and whether the business is healthy.
This advice may sound strange, but as a CPA, I’ve worked for some very bright people who have built monstrously complex financial structures for their businesses, including complicated leasing arrangements, labyrinthine partnership and corporate structures, and sophisticated profit-sharing and cost-sharing arrangements with other businesses.
Of course, the one positive thing you can say about such arrangements is this: You’ll make both your accountant and lawyer happy. And rich. So that’s good for them, at least.