Are Your Business Financials Truly Where They Need to Be?

We think about celebrities and envision the glamorous life, clothes, jewels, exotic vacations, private planes, you know all those things.

However, many of these celebrities are in financial trouble due to too much of those expensive things.

You as a business owner don't want to make these same mistakes.

Sometimes it takes a little reality check to make sure you won't make these mistakes…

As the article, “5 celebrities who needed major financial help” looks at, being smart with your money is important whether you’re a multi-millionaire or the little mom or pop shop owner who runs the business of your dreams.

When it comes to not properly handling money, business owners only need to look to:

• Nicholas Cage - Who knew that this big star failed to pay millions of dollars in taxes? He has had homes foreclosed and other problems due to financial mismanagement. Cars, yachts and homes seemed to be his weakness.
• Stephen Baldwin - One of the four famous Baldwin brothers, Stephen had to foreclose on his home as well. He also owes hundreds of thousands of dollars in state income tax.
• Toni Braxton - Spending too much on jewelry and other things has cost her a lot. She has filed for bankruptcy twice and owes around $50 million to various companies.
• Annie Leibovitz- Though much of her debt came from estate taxes, she has also had issues with unpaid taxes and other financial dilemmas.
• Lindsay Lohan - A big spender, spending way too much on cars, watches and jewelry, she has gotten herself into financial trouble. Her early earnings were hard to repeat later with her other issues concerning drugs and alcohol.

Don’t Fall Into a Money Hole

So what about you?

What are some key things as a business owner you can do so as not to fall into the financial traps?

• Know what you have and what you owe - Many celebrities, and many other "regular" people, spend more than they earn. Keep spending in check and don't overspend. If your income isn't always steady, be careful not to count on what you may not get.

• Plan for taxes - Don't let taxes surprise you. You may want to work with an accountant so you are setting aside what you'll need when April rolls around. You don't want to get caught owing what you can't pay. As a small business owner, this is on you. Unlike working for a large corporation, you probably don't pay taxes automatically each pay period, and they can shock you at tax time.

• Keep the right insurance - You don't want to go uncovered or be paying for insurance you don't need. If you have big items, insure them. Think about what kind of business insurance you need to keep you and your finances safe. One small mishap can be financially devastating if you aren't insured properly.

Sometimes being a business owner is the best - sometimes it's tough.

You are the manager of a lot of things, including your finances.

Make sure you get help if you need it; once you've gotten into deep debt, it's tough to get out.