The entrepreneurial spirit that has taken hold of today’s workforce has led to many people jumping into self-employment, freelancing, and gig work. Unfortunately, being an expert in the products or services you provide does not make you an expert in managing business and personal finances. Many sole proprietorships and individual freelancers are lost when it comes to the related financial matters.
In the interest of employee health and safety during the COVID-19 pandemic, many businesses have taken their operations remote. According to Forbes, more than half of employed Americans have transitioned to working from home since March 19.
There are many financial benefits for those looking to take their business down an environmentally conscious path. Climate change and similar ecological threats have shifted the way people view corporations.
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It’s a brand-new year, which means that tax season is upon the nation. You still have until April to figure out your taxes, but the new laws may slow your progress this year. Don’t worry about your 2019 taxes. Simply follow a few tips in order to ease any tension. The new rules will make sense as you get accustomed to the enhanced forms and various deductions.
Get started on your taxes with these tips and tricks.
Owning and running a business can be stressful enough as it is. Unfortunately, the holidays can take that stress to the next level. A little careful planning, however, can keep things running smoothly over the holidays and help ensure that your company takes advantage of the busy season.
If you run a small business, managing your finances is one of your most important tasks. Fortunately, there are many fine software tools available that can help you do just this. Here are five finance tools your small business should make use of.
As you know, running a small business requires you to wear multiple hats. Many small business owners do not have the time to be on top of their finances as much as they should.
And it’s easy to understand why. There’s a lot to handle from making sure you’re deducting your expenses correctly, taking care of payroll, to ensuring your accounting is organized for tax season.
But here are some important resolutions you should make this New Year if you want a significant improvement in your wallet.
Your cash flow controls the flow of your business, so delays can quickly halt the progress of your business.
If you’re dealing with cash flow problems due to the way you are accepting payments, you may have to come up with an alternative that works with your customers or clients.
If you’re spending too much on inventory at once and can’t come up with a decent budget for marketing, it’s a good idea to try to restock twice rather than all at once.
The point here is that you need to manage your cash flow to ensure that your business runs smoothly and isn’t at risk of taking a financial hit. Cash flow will be vital for paying your employees on time, having a budget for marketing, and paying for inventory, so even the slightest of delays can hurt your business.
If your business is based on physical goods, then it’s time to take a serious look at your inventory this year. You want to really go through your inventory to see which products are costing you money, which products to order less of on the next run, and which products you need to order more of.
Evaluating inventory has always been one of the best ways for small businesses to save money, but it is also a good way to spot opportunities.
For example, a product that you didn’t think much of may be popular with customers or a product that’s not seeing much volume might have a high profit margin and may be worth marketing to customers.
Working with a tax professional that specializes in business tax can translate into a significant amount of savings for your business.
You’ll be able to get information on what you can deduct, avoid tax violations that can get you into trouble, prevent your business from being audited, and learn various ways to save even more money.
But it’s very important that you consult with a business tax professional far earlier than when your taxes are due. This will give you the time to run your numbers back to back for accuracy, better organize your tax records, and ensure that all your deductions are accounted for.
Those are just some of the finance resolutions you should make for your small business this New Year. It sounds simple enough, but each of the three on the list does require a respectable amount of your time.
So rather than trying to spread yourself thin trying to put all three into place, start with one until you feel that you’ve gotten that aspect of your small business finances in order.
Once you see some success, you’ll quickly gain the motivation to put the other two financial resolutions into action.
Photo: 401(K) 2012 / CC 2.0
