A recent study found that the wealthiest among us add, on average, want an extra nine happy and healthy years to their lifespan. This is comparable to quitting smoking and more than if you decided to start hitting the gym five times a week. So what New Year’s resolutions are you setting in place? Forget about the gym, diet, and Nicorette and focus on practicing business habits that can help you maximize profits. Whether you are starting off with a new business venture or looking to make improvements within your already established company you need an advisor with a proven track record to assist you.
Here are four basic tips to help you save time and money. Of course, every business and business owner are unique so please do yourself a favor and let SD Associates help guide you toward wealth and potentially a longer life.
Keep Business Finances in a Separate Account
One of the first things you can do to set yourself up for success is to separate your business and personal spending. This requires opening a separate account to track all your business expenses. Having a dedicated business account will save you time and money in the long run. At SD Associates, our accounting and bookkeeping services will allow you more time to focus on the important aspects of your business, while we take care of the financial aspects.
Establish Clear Payment Terms
Successful companies have strong, open lines of communication with their clients. Establishing clear payment terms from the start can help you and your company avoid late payments and cash crunches. Get paid faster with solidified invoice payment terms. Clearly state accepted forms of payment, due dates and late-payment penalties from the get-go. Don’t be afraid to send out reminders and follow-ups.
Budget for Emergency Expenses
There’s no such thing as being overly prepared. Putting a portion of your profit aside or building space within your budget can save you in case of an emergency. Whether unforeseen office renovations arise, or immediate work equipment replacements are needed, having the extra funds set aside for these situations can help you get back on your feet. Keep at least six months to a year’s savings put aside for these situations— it will make all the difference.
Work with a Professional
Connecting with professionals in the field of accounting will give you a greater insight into your current business standings and what your next steps to success should look like. A professional accountant or bookkeeper can keep your records and books up to date and make you aware of any loopholes, potential fees or additional tax deductions that you might be eligible for. The accounting services offered by SD Associates will give you more time to focus on the forefront of your company rather than stressing over the behind-the-scenes finances.
Set time aside to meet with a trained and experienced CPA for a better tomorrow for your small business. Contact us today to start saving money now to make your new year the best one yet.