Dollar signs are a big part of what small business owners see in their eyes when operating a small business. These dollar signs represent both potential income for a company and any expenses it incurs. When there is plenty of money to go around, things are great. However, when money is tight for small business owners, it can be quite challenging.
1800Accountant suggests the following tips on how to save more of the hard-earned money you make:
1) Project your small business expenses initially and on an ongoing basis.
The startup phase of a company often presents hefty financial investments that can break the bank if you aren’t careful. Because of this, you should plan ahead by estimating how much money you’ll have in the beginning and throughout the early stages of your small business. This method of planning will let you set aside a portion of your finances to save for the future.
2) Maximize your income in all possible facets.
You may have a substantial source of income being generated by what your business offers. However, there are likely some strategies you can utilize to maximize how much you’re actually bringing in each year, which can make it easier to save more of your money. Consider tinkering with your products or services. Think of ways to improve your offerings so that you can gradually make a little more money off of them. There are many ways to keep your prices reasonable and maximize your profits at the same time. It’s all about a little creativity. In the end, having more income means you can save more.
3) Reuse/recycle items when possible.
Buying new things is great and occasionally a necessity, but reusing or recycling certain items can greatly benefit your business. Office supplies are just one example of a category of items you can reuse. There’s no sense in getting new computers, staplers, tape holders, pens, or paper if you don’t have to. On a larger scale, expensive pieces of equipment that you use in your business may be able to be used for longer periods of time than you think if they are properly maintained. Recycling benefits others as well, so try to recycle if you can.
4) Eliminate unnecessary expenses you are paying.
Make sure everything you are spending money on is in some way benefiting your small business to ultimately turn a profit. By thinking like this, you’ll be able to recognize which items or services you’re using that are not absolutely necessary. For example, is that fancy laptop a want or a need? If you can, cross these off your budget. You’ll probably end up saving money on a regular basis. On another front, transportation costs can be reduced if you carpool with others or work from home.
5) Get your business taxes in gear.
Business taxes are much different than personal taxes. This is why you should take control of your tax situation as it relates to your small business. Find out what deductions and credits are available for you to claim on your business return. These tax-saving opportunities can significantly reduce your tax liability, allowing you to keep more of the income you earn.
This article was originally published 1800 Accountant
Published: January 14, 2014