RESPONSABILITIES OF RUNNING A BUSINESS

As a small business owner, you can have the ability of creating something for yourself rather than for someone else.  You also have a unique lifestyle; more freedom and flexibility than that of an employee. However, you also have greater responsibilities. As a business owner you might retain the services of professionals such as accountants, attorneys and human resources professionals.  However at the end of the day, you are the one responsible to understand the basics.  For example giving your bookkeeper full range of responsibility of overseeing your financial records without accountability or taking their representations at face value without asking questions is not being a responsible business owner.  You should question and challenge the advice provided by attorneys, CPAs and other professionals.  This is one way to evaluate the effectiveness of your professional.  If they have problems with being questioned, then get a new professional.  This might cost you in higher fees, but at the end of the day, you will be rewarded in being assured in having top notch professionals on your team.

Another mistake some business owners make is giving total administrative control over the other partner.  It is good to have one partner to be given the task of a CEO, also known as a tax partner.  However that person should give monthly reports to the other partners, including financial statements.  This might be tough if the other partner(s) are friends or family, but you are involved in a business which is your livelihood.  Business MUST be separate from personal relationships.  This might be easier said than done, but doing so will not only protect your business but also your personal relationships. In some cases it is best to never do business with friends and family

If you are intimidated in tax and accounting concepts you might want to take some good seminars provided by Small Business Development Centers, sponsored by U.S. Small Business Administration [SBA].  These seminars are a great way to get grounded without trying to be an accountant.  They can be found on the web at

http://www.sba.gov/content/small-business-development-centers-sbdcs

Another resource might be the local city college.  But in any event, remember it is your business and at the end of the day you are the only person responsible for its success.