5 Spring Financial Tips for Small Businesses
The temperatures are rising outside, and hopefully so are sales at your business. While you might not always have time to get outside and enjoy the sun as much as you’d like, spring is a great season to get organized and set priorities for the rest of the year. If you’re stuck, we’ve got some ideas to get you started.
- Minimize Surprises
Even if you love surprises on your birthday, when something unexpected happens with your business, it might not be such a pleasant experience. The reality is, unexpected events will occur, but you can take precautions. Examine the coming year, and forecast some specific dates when you may need extra time to focus on an important project. Or try and pinpoint some dates where you might need additional cash to pay for important upgrades (like purchasing a new credit card machine to be EMV compliant by October 1st), annual expenses, promotions, marketing campaigns, seasonal items, accounting fees, etc. You’ll be glad you did.
- Keep Business and Personal Expenses Separate
It might be tempting to use your business expense account to buy your significant other a gift or to splurge on a cool pair of shoes, but almost every financial advisor will tell you it’s best to keep those two accounts separate. Sure, you can pay a personal purchase back to your business, or vice versa, but you’ll also have to log the transaction for accounting purposes, but that’s not a habit you want to find yourself revisiting often. Simplicity and separation is best in this case.
- Track Daily Expenses
Maybe it seems like an added chore, but try setting aside some time at the end of every day or - even every week - to review your expenses. Getting a handle on your daily expenses - generally, where they’re coming from and where they’re going - can go a long way towards making accurate projections for the coming weeks and months. Just ask any start-up: money goes quick. If you’re looking for software that can make managing your finances a little easier, check out our products.
- Know When to Spend
Most business financial advice out there revolves around saving, skimping, and trimming. Obviously being intelligent with your capital and thrifty whenever possible should be a priority, but sometimes it can get you in trouble too. Knowing when to pay a little extra for a greater return can be incredibly advantageous, and can save you money in the long run. So whether it’s upgrading new business equipment like a new credit card machine or hiring a top-of-the-line service provider, remember that from time-to-time, a little extra money goes a long way.
- Start Preparing for Tax Season
We’ve said it before, but tax season preparation is really a year-round exercise. Make sure you’re logging your expenses, and putting aside money for quarterly estimated payments or just a rainy day fund. It’s recommended most small businesses rely on a trusted accountant familiar with their industry, and it’s not a bad idea to check in with them periodically through the year.
Hopefully these tips will help build on the momentum you’ve been making in 2015, and save you extra time so you can get outside and enjoy the spring weather!