By Colleen Kay Watson, Career Professionals®

A good idea, successfully implemented, could possibly become the next fortune 500 corporation. Every Wall Street success story started as a small business. The common denominator behind the winners was sensible handling of the companies resources.

Small business owners must have good financial common sense to survive. Jennifer Stone, a CPA and co-founder of Paroe Personal Concierge said, "Ninety percent of companies fail due to poor planning and/or cash flow problems." Stone continued by saying that her accounting degree was helpful but not necessary to run the books of a small business. "A minimal understanding of bookkeeping is enough to get started, but a small business owner must understand the flow of company’s money."

Career Professionals Inc. opened their doors in 1989. Before that could happen, hours of preparation were needed to assure a successful start. All of the planning required a balance sheet of expenses vs. projected income. Fifteen years later this successful small business is thriving due to careful financial practices. Deb Kruger Knight the co-founder and CFO of Career Professionals say, "Business moxie and street smarts are the key ingredients to handling small business financials. Not spending foolishly has kept us in the black."

Education Necessary

While Stone has an accounting degree, Knight has a social work degree and has never taken a business course. Both women say that if one can balance their own checkbook one could start a business. Cash in and cash out is the same no matter the size. Running a negative balance will eventually result in going bankrupt. Stone recommends taking a community college course in accounting to help understand generally accepted accounting practices. Knight indicated that working on bank statements for her accountant grandfather and father gave her enough knowledge to run the company books.

Outside Help

Accounting and bookkeeping services can be helpful resources for small business owners. Outside help, wisely used, can offer excellent advice. A CPA knows tax laws and can advise smart business moves. Hiring an outside bookkeeper to track and record total financial records is also very helpful for the small business owner. "But be very careful to also keep a close eye on the money. Outsiders do not have the same vested interest as the business owners. Keep your own books and double check the numbers," advised Stone.

Record Keeping

If running a general spreadsheet makes as much sense as building a car from scratch, there is help available. SCORE (Service Core Of Retired Executives) and the SBA (Small Business Administration) offer free or reasonably priced help for start-up companies. Attending one of their seminars will help to understand the basics of small business financial statements. Simple software programs can also help learn the basics.

Common Cents

The amount of financial knowledge needed to run a small business is equal to the complexity of the business. Manufacturing companies have inventory issues that do not exist in service firms. Restaurants products have a much shorter shelf life than retail products. The best way to succeed is to use common sense.