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How Can Your IRS Tax Refund Benefit Your Small Business?

If you filed your taxes with the IRS on time this year and were due back money in the form of a tax refund, there’s a good chance you have received that refund check by now—either via direct-deposit or in your mailbox.

So, if you got back the average refund amount, which is generally over $3,000, it’s time to start thinking about what to do with this extra cash.
Are you an established small business owner? An aspiring entrepreneur? If so, it’s highly recommended that you put this money into your enterprise. Here are some ways your tax refund can benefit your small business:
Use it to hire an assistant.
Feeling overwhelmed as a small business owner? Wearing too many hats for your head to handle? Consider bringing on an assistant. There are lots of options here. You could hire a virtual assistant who works remotely from anywhere in the world. You could hire a part-time assistant who helps you in your home office or in office space you rent out. Or, you could bring on a full-time personal assistant. Of course, your tax refund may not cover an entire year’s salary for one, but it would be a start to allow you to bring someone on for a few hours per week, assisting with answering the phone, responding to e-mails, or scheduling client meetings.
Use it for marketing purposes.
Is there a marketing strategy you haven’t been able to tap into because it doesn’t fit your budget? Well, now that you have some extra spending cash, you can put it toward marketing your small business. Consider buying a TV or radio commercial. Perhaps you’ve always wanted to try Facebook ads or Google AdWords. Now’s the time to give them a shot. Just remember to target your marketing by using strategies that will effectively reach your consumers.
Use it to upgrade your equipment.
Is your laptop starting to run slowly? Upgrade it with your IRS tax refund. Small business owners need to be surrounded with decent equipment that allows them to perform their work as efficiently as possible. So invest in a new laptop, smartphone, tablet, or GPS for your truck to make your life as an entrepreneur a little easier.
Put it toward opening a brick-and-mortar location.
Have you dreamed of opening up your own brick-and-mortar location on Main Street? Your tax refund may not be your golden ticket to doing so, but it can put you on track to making this dream become a reality. Both owning and renting a brick-and-mortar retail store are quite expensive, even if your store is a little off the beaten track. But to afford the rent, utilities, signage, cash register, and everything else involved, a decent refund check can help you get there.
Save it to pay your 2016 tax bill.
Now that the 2015 tax season is over, it’s time to start looking ahead to 2016—unless you filed an extension and must file before October 15th of this year. In any case, you could put your refund money into a business savings account so that you have it handy if you owe Uncle Sam in 2016. Or, on a related note, consider investing it into an account that will make some interest.
This article was originally published by 1800 Accountant
Published: May 5, 2015

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