5 Tips to help you run your business smoothly.
1. Plan for Major Expenses. Plan for expenses that could be coming up in the next one to five years. Do you need to do any upgrades? Do you need to put another truck on the road? Hire? It is important to acknowledge the seasonal ups and downs of your business, so you will have to make sure you spend accordingly during those times.If you do this, and make smart decisions, you will avoid taking money out of the company during good months, and find yourself behind in the slow months
2. Track Your Expenses. Nobody likes to track expenses and they can be hard to track, which means that you may be missing tax write-offs that you could have benefited from.By getting a business credit card you can make sure all expenses are kept together and tracked. Making sure you keep up to date with your payments. It is also useful for you to make notes in your calendar of the clients that you are meeting for each of those coffee dates, lunches and events. This will help substantiate your expenses for your tax records, should you be audited.Your Bookkeeper will know everything you are able to write off. Keep in close contact with them
3. Record Deposits Correctly. Make sure you keep track of what is being deposited into your business bank account. You can do this with cloud based software right on your phone. Simple, fast, easy. If for some reason you cannot account for deposits into your account you might end up paying extra taxes on money that isn’t income
4. Set Aside Money for Taxes. Death and taxes right? Those are things that are for sure going to happen. So its important to set aside money for it. This way you don’t have to come up with a large amount of money, we know what happens when you don’t pay on time #penalties #interest. So make sure the money is there when you need it. By putting money aside each month, or each time a contract is paid, It won’t hurt as much when the payment is due.
5. Keep an Eye on Your Invoices. Late and unpaid bills can hurt your cash flow. Make sure you have a process in place if a bill or invoice goes unpaid. Make a plan for if clients are 30, 60 and 90 days late. Remember, every late payment is an interest-free loan that hurts your cash flow.