Financials

SOPs makes the delegation process run smoothly. With SOPs common tasks can be delegated with very little interference on your part. This allows you as the business owner to use your time on matters that really require your attention thereby increasing your income making potential. Steps to developing a SOP To illustrate the steps to developing a SOP, I will be developing a SOP for ordering ink cartridge. Determine your

In the last post, I defined standard operating procedure and gave a quick run-down of factors to consider while developing sops. In this post, I will define terms you should consider while designing standard operating procedure. To design effective standard operating procedures, you must know the difference between policy, procedure, guidelines, and regulations. Policy A policy is a course of action adapted to achieve a set of objectives. It is

Having standards of operations and procedures (SOPs) is important for a self-employed individual who wants to have a business that runs without their physical presence. What is Standard Operating Procedures (SOPs) Standard Operating Procedures also known as SOPs are a set of detailed written instructions to achieve consistency in key areas of your business. A well written SOP is an essential part of scaling your business. SOPs should be created

If you run your business with a partner then chances are you run your business as a partnership. As a partner in a partnership, you are not considered an employee. The accountable plan discussed in the previous post is an employee reimbursement agreement. Since partners are not considered employees, the accountable plan does not apply to partners. Partners do not receive W-2s, rather they received a Schedule K-1 (Form 1065)

Previously I talked about the accountable reimbursement plan as a way to reimburse yourself for business expenses bought with personal funds. In this article, I delve more into the accountable reimbursement plan. What is an accountable reimbursement plan? An accountable reimbursement plan is a method of reimbursing employees for business expenses paid with personal funds. To be considered an accountable plan by the IRS, it must follow these rules: The