How healthy would you say your small business finances are these days?
In the event things are not going as well as they could and should be, don’t you think now is the time to take some action?
By spending time focusing on your financial health, you can better avert disaster.
Don’t Let Company Finances Doom You
When it comes to doing all you can to better your business outlook, here are some areas of focus:
- Know when you need a helping hand – It is important that you know when the time comes to get financial help. While you may have too much pride to ask for it, don’t let a solvable financial issue turn into trouble. That said are you familiar with revolving credit? Such credit means you can access funds when you need them. Once given a pre-approved limit, you can get the money you need without having to apply again and again. This makes it easier to get the money to put towards different things. Whether new office equipment, expanding your office and more; the funds are there in your time of need.
- Avoid running up major debt – If you are using a company credit card to pay for some business items, don’t run up a big tab. Doing so can lead to interest fees and in essence throwing away some money. Always do your best to pay off the monthly balance. Better yet, try and use cash as often as you can when needing office materials. Doing this will also often allow you to spend less. Since you are a consumer at times too, know that many consumers tend to spend less when using cash over credit.
- Finding the best in deals – How good of a job do you do when it comes to finding the best deals? Since you have to buy things for your business, be a smart consumer. This means looking for discounts whenever you can get your hands on them. It may be wise to buy some items for your business in bulk. Also review the deals you have with vendors supplying your office various items. It may be time to reconsider finding other vendors if you are paying too much for certain items.
- How are you doing on your taxes? – Also take the time to look at your yearly tax situation. In being a small business owner, you want to get the tax breaks whenever you legally can. Be sure to go over your allowable deductions each tax season. The last thing you want to do is be missing out on any deductions. If you are not a tax expert or do not have the time to put into doing your taxes, get a tax pro to help you out.
- Are you paying too much in office rent? – If you rent your office space, are you getting the best deal for it possible? Look around your area to see what comparable places rent for. Make sure you are not paying too much to rent out space. If you conclude you are, it may be time to look elsewhere. If thinking about moving your office location, take different factors into account. For example, do you have a lot of customer foot traffic? If so, how would a potential move impact such traffic?
- What do you pay for insurance? – Finally, being a business owner means having to pay for insurance coverage. From renter’s insurance to health insurance for employees and more, find deals. Like with anything else you buy, chances are there are better deals out there if you take the time to look around.
In giving your business a financial checkup, you do one of the most important things a business owner can do.