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Be honest: how difficult were your taxes this year? Did you have trouble figuring out how much you made and how bad your expenses were? Were you afraid you missed something? How many fistfuls of hair did you pull out?
Many sole proprietors start their businesses as a hobby or side income. It might not seem worth it to go to the hassle of opening a whole new business bank account. But keeping your personal and business finances combined can lead to some pretty bad headaches. And not just at tax time, either. There are several reasons why you should consider splitting your two financial worlds up immediately. Here are a few that could be affecting your business right now.
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Remember your New Year’s resolutions? One of them was to get your life and business in order. Maybe you had a tough time with your taxes or you’re tired of always playing catch up with your books. Whatever the case, we’re now getting well into spring and it’s time to take those resolutions seriously.
But where to start? You could reorganize your office space, redo your business goals, or even finally spruce up your social media like you’ve wanted. However, in business, the success of your company comes down to the bottom line. That’s why we recommend paying close attention to your finances first.
Whether you’re a new entrepreneur or an old hand, money occupies a prominent role in your business. Failing to get – and keep – your finances in order can doom your company or consulting practice in the long run. While each entrepreneur has their own set of unique financial challenges, there are several areas where nearly all entrepreneurs can draw from a general well of wisdom.
1. Pay yourself first, Uncle Sam second.
No doubt, you’ve heard the expression “pay yourself first.” That’s good advice for everyone. However, entrepreneurs must remember that with no employer-initiated tax deductions to count on, they must also make provisions to cover self-employment taxes.
2. Hire pros, but know what they’re doing.
You didn’t go into business to spend hours working on spreadsheets. That’s why you hired a Certified Public Accountant. However, you should still understand the basics of keeping the books, if for no other reason than to be able to answer your accountant’s questions at tax time.
People assume they will have to pump money into their start-up business, but what they don’t always know is that to continue to keep their business strong and thriving, they also need to continue investing in their growth and internal development. The question, then, becomes how to afford keeping their growing business from becoming stagnant. Here are a few strategies and financial options for managing business expansion without sinking the ship.
First, you must decide what it is that you are looking to invest in. Do you want to update a software system? Open a new business location? Remodel your existing one? Add a product line, or develop a new product? Expand your marketing outreach? Decide where your focus lies, and then you can strategize how much you’ll need to invest. You may not be able to tackle all of your goals at once, but choosing one or two specific paths will help you to be intentional when it comes to your money and other resources.
By Mike Spalding
There is one area of business that very few business owners, managers or entrepreneurs really enjoy working on and that’s finance. Unless you happen to be an accountant, this is probably one aspect of business management that you try your best to ignore.
But it’s important that all businesses, charities and enterprises don’t ignore or do poor work on their finances either. For a small business it could be the difference between thriving and going bust. For a charity it could be the difference between helping those in need and falling short.
So with that in mind, how can technology help you to manage your all important accounts?
By Mike Bertrand, Founder/CEO of MoneyStream - and as a special offer to MyCorporation customers, try it free for 90 days.
It’s a common joke among small business owners: I’m the CEO and the sales guy and the billing department and I make the coffee. As the founder of multiple successful software companies, including personal finance management service MoneyStream, I’ve certainly used that line more than a few times.
Of course, we don’t complain about making the coffee. Hey, someone’s got to do it. But there has to be a limit.
I’ve been fortunate to work with numerous entrepreneurs over the years. One of the pitfalls they fall into is the wasted timed on low-payoff work like running to get office supplies. Meanwhile, they short the activities that drive growth, such as negotiating a lucrative contract or persuading an existing client to grow their business.
Managing your personal and business finances is not low-payoff work. But it’s not your core competency either. Fortunately, you don’t have to be a CPA to properly manage your finances. Here are a few tips for saving time on financial management.
This guest post is brought to you by GoDaddy Online Bookkeeping (formerly Outright) the simplest way to manage your small business finances online. Sign up today for a less taxing tax time!
Running a business only works if you get paid. Sending out invoices with no answer from the client or customer can cause you to pull your hair out and stay up all night wondering how you’re going to pay the bills.
Now that GoDaddy Online Bookkeeping also includes a new Invoicing feature, we’ve taken a marked interest in how our customers invoice. And we’ve come up with several best practices that seem to get invoices paid promptly and in full.
By Greg Lindberg, 1800Accountant Writer
In the eyes of most small business owners, bookkeeping is likely one of their least favorite things to do. When you sit down and think about it, who truly enjoys pouring over lengthy spreadsheets and calculating financial figures that will often make your head spin? Even though bookkeeping is not a highly popular task it is still one of the most important priorities on any business owner’s to-do list.
Bookkeeping is a practice that involves maintaining all of the financial records of a business. It is vital to keep a keen eye on the profits a small business generates, the money it pays in the form of expenses, and the taxes it incurs on a regular basis. When you can see a clear snapshot of this information in front of you, the financial side of your small business will immediately become very important to you.
This guest post is brought to you by Outright, the simplest way to manage your small business finances online. Sign up today for a less taxing tax time!
You hired a freelancer for some temporary work at your business, but now you’re worried about what the Tax Man requires. After all, you were already so busy you had to get somebody else to come in to write that blog post/add on to your home office /upgrade your computer/etc. How in the world are you going to find the time to do extra taxes?
Luckily for you, they’re actually not that complicated. While they seem like they should be tougher, freelance taxes are simple for the small business owner to deal with. But first, there’s something we should clear up.
If you’ve ever shopped at Costco, Sam’s Club or any other warehouse-type store for home goods, you know how easy it is to get carried away with the tantalizing prices of bulk items. “Twelve dollars for 20 bars of Dove soap? What a steal!” Then you get home and remember you don’t even use Dove soap, and it just sits in the back of your bathroom storage cabinet.
As tempting as some of the prices might be, buying in bulk isn’t exactly as cut-and-dry as it seems. When it comes to bulk-buying for business, things can get even more complicated. Read on for some tips on how to really get the most bang for your bulk buck.