As opposed to personal finance where the goal is tracking personal worth, business is concerned with matching the expense of purchasing capital assets with the revenue generated by them. This is done through book depreciation. Businesses must also be concerned with local tax laws covering depreciation of assets. This is known as tax depreciation. The business is free to choose whatever scheme it wants to record book depreciation, but the scheme used for tax depreciation is fixed. More often than not this results in differences between book and tax depreciation, but steps can be taken to reduce these differences.

Now, what purchases should be capitalized If you expect something that you purchase to help you earn income for more than just the current year, then it should be capitalized. This includes things like land, buildings, equipment, automobiles, and computers - as long as they are used for business purposes. It does not include items that would be considered inventory. So if you made a purchase with the intent to resell the item, it should not be capitalized.

Small Business

A Complete Small Business Sales and Management Program designed to help new and existing business owners compete and win in businesses by providing a complete business sales and management software package that will help you professionally run your business. SBMPro includes major sales, revenue, and margin modules that helps you to insure you are profitably running your business in a professional way that will help you compete and win.

Small Business Resources

Getting Started

Accounting and Finance

Business Plans

Demographics

Direct Marketing

Financing Your Business Venture

Incorporating Your Business Industry Trends

Legal Issues

Contracts

Employment Law

Other Legal Issues

Licensing and Permits

Marketing

Basic Concepts

Depreciation is the accounting method for expensing capital purchases over time. There are two reasons that you may want to record depreciation; you are doing bookkeeping for your own personal finances and would like to keep track of your net worth, or you are doing bookkeeping for a small busines and need to produce a financial statement from which you will prepare your tax return.

Few Ways to Maximize Your Small Business Server

1. Most small businesses in your area have never heard of Microsoft Small Business Server :---

Although there may be hundreds, if not thousands, of small businesses in your area that would be excellent candidates for Microsoft Small Business Server, don't make the ultra-common mistake of assuming that the typical non-technical small business owner even knows what Microsoft Small Business Server is.

If you want to maximize your consulting profits and avoid commodity price wars, you're much better off leading off with a pitch for something that's more universally recognized such as getting rid of computer viruses, stopping SPAM, or preventing computer security breaches.

2. Sell your small business prospects on YOUR company first : ---

The real money in Small Business Server is NOT in reselling the Microsoft Small Business Server software. The real money comes from selling the RELATIONSHIP with the small business. So your company essentially becomes your clients' outsourced IT department.

Remember, no small business owner is going to wake up in the middle of the night, in a cold sweat, craving Small Business Server. However, small business owners DO constantly lose sleep over what will happen to their companies if their computer systems fail them. Become the solution to the more primal, survival instinct and you'll get plenty of opportunities to sell Small Business Server, once you've established a solid client/consultant relationship.

3. Microsoft doesn't value computer consultants as much as they sometimes say :---

Little known fact: the first version of Microsoft Small Business Server, planned in 1996 and released in 1997, was code-named SAM because Microsoft's goal was for Small Business Server to completely bypass their reseller channel and be sold at Sam's Club warehouse clubs.

So the product team had the mandate to make the Small Business Server product SO simple that a non-technical small business end user could buy Small Business Server at the warehouse club and have the Small Business Server suite running in their office that same day.

Shortly after the first-version shipped, Microsoft realized that the most cost-effective way to reach small businesses with Small Business Server was through their reseller channel. And since then, Small Business Server resources have flowed toward the channel.

Steps Required on a new server:

Set up nameservers

Secure the server by tweaking security settings

Check that all server services are running

Install add-on scripts that you would like to offer your clients

Install security scripts if you wish to increase server security

Account Setup for the Small business Server

As with most accounting practices, there are a number of different ways to setup depreciation accounts. We will present here a general method which should be flexible enough to handle most situations. The first account you will need is an Asset Cost account (GnuCash account type "asset"), which is simply a place where you record the original purchase of the asset. Usually this purchase is accomplished by a transaction from your bank account. In order to keep track of the depreciation of the asset, you will need two depreciation accounts. The first is an Accumulated Depreciation account in which to collect the sum of all of the depreciation amounts, and will contain negative values. In GnuCash, this is an account type asset. The Accumulated Depreciation account is balanced by a Depreciation Expense account, in which all periodic depreciation expenses are recorded. In GnuCash, this is an account type expense.

Conclusion

A home business income opportunity is a wonderful thing to consider engaging in, whether on a full time or part time basis. In order to choose the best type of home-based business opportunity, the future business owner should search reputable websites online to gain information and obtain references. In addition, the individual should have specifics in mind relating to the desired business and consult books regarding home business opportunities. By doing these things, the individual will be that much more likely to see beneficial results.