December 4, 2015
Running a business can be a costly venture, and something that many shy away from because they feel overwhelmed by the financial side of things; overheads are difficult to keep track of, unexpected expenses may occur and budgeting may go out of the window. But the following tips for keeping your finances in order may help your business stay afloat and your head remain above water.
Tip 1: Log your receipts
While this advice may seem obvious, it can trip up any business owner and should never be overlooked. You need instant access to all of your business receipts, for both ingoing and outgoing, and the best way of keeping them safe and up to date, is by logging them numerically in a spreadsheet, and make an effort to do this at least monthly. Not only will this save you from missing out on potential tax deductions and credits, but it will save you having to pay an accountant to undertake what should be a simple task; save your accountants fees for the complicated stuff!
Tip 2: Set some of your earnings aside for tax
Set up a monthly standing order that deducts a percentage of your earnings into a separate account, each month. This way, when your tax bill is generated, you can rest easy knowing that the money is readily available to pay it with.
Tip 3: Hire an accountant
While we all like to think that we can save money by not employing the services of a professional where are finances are concerned, doing so could actually end up saving you money. There may be tax allowances that you weren't aware of or rules and regulations that could easily catch you out, and your accountant will highlight these for you. You'll also have more time available to focus on running your business, instead of stressing over end of year finances.
Tip 4: Get organised
Being organised from day one will ensure that your business is kept running as efficiently as it can be. Using a diary to keep track of invoices, can help remind you if any monies are outstanding, and even using it for day to day general reminders will help you make good use of your time.
Tip 5: Set a budget
This may seem a daunting and dull task, but it will prove invaluable further down the line in the life of your business, in fact it should be as important to you as forming a business plan. It doesn't mean that you have to plan for every dollar in advance, but a good budget will help you remain within your financial confines and help you make clear decisions about increasing, or cutting your spending.
Keeping your finances in good order need not be stressful, provided you stick to a few simple rules and seek professional help when needed; if it's in the best interests of your company, it's usually in your best interests too!
Whatever the time of year, taxes are never far from the thoughts of most small business owners, and planning and preparing for them is an all year affair. Many small companies use tax professionals to assist them with their taxes, not only for convenience but for ensuring that their returns are timely and correct, and if you don’t yet have one, perhaps you...
There are, of course, strict penalties in place for those who incorrectly file their tax return, whether it’s a business or personal one, but the IRS will not assess a penalty if it owes you or your business, a refund. You can even claim your refund late by filing an amended tax return within three years, but if you owe money to the IRS and fail to pay...
Tax time comes around with surprising regularity, and when it seems you’ve only just got over the stress of filing in time for the deadline, that time of the year comes around again and our taxes loom over us like a rain cloud.
With the tax reform now in full swing, it’s more important than ever to get your taxes right and to try to understand the changes to the law as...