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The financial issues an entrepreneur must manage can be divided into two basic areas: adequate operating capital and effective financial management. Both are issues that require guidance from a professional.

As you plan to start your business, it is important to be sure you have enough money to supplement your business income for at least six months. Undercapitalization is a frequent reason for business failure. Your SCORE mentor can help you assess those needs.

The Small Business Administration (SBA) is another source of advice. An SBA counselor can assist you in preparing for an SBA loan. Your local banker is a resource, as well. He or she can help guide you through preparation for a loan, and can help you set up and structure your business banking needs. Establishing a relationship with a knowledgeable banker is an important step in starting a business.

Managing your finances effectively is a complicated process. Understanding where and when your money comes in, what bills to pay when, what money to set aside, and what the most recent tax laws require are issues that most entrepreneurs are not familiar with. That is where a knowledgeable accountant can make a real contribution. Your accountant can advise you on how to set up your accounting procedures, and what software to use. He or she will also be sure you are in compliance with all tax law. While it is your responsibility to manage your finances, your accountant will provide expertise to assist you.