4 Ways To Keep Your Finance Resolutions
The New Year is a perfect time to take control of your business finances.
Entrepreneurs start with the best intentions, but things can soon get out of control. That’s why more than 50% of startups fail within the first year, and eight out of ten close at some stage in their lifecycle.
To succeed financially, you must manage your money well, monitor you expenses, and managing clients. Without a sufficient cash inflow, you can’t operate your business.
Here are four straightforward and hassle-free ways to keep your money resolutions this year:
Contents
What About Taxes?
While the deadline for filing is in April, the payment deadline for 4th quarter estimated tax payments is in January of the following year.
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So, the New Year may begins with a massive check to the IRS when money is tight. Of course, this can lead to complications, especially if you don’t have the cash. However, it’s not hard to pay, if you consider the tax implications ahead of schedule.
Put the amount aside in a separate account and leave it alone. With a bank transfer, there’s no need to think about it until the estimated payment is due.
Meeting the deadlines means you don’t begin the year on your back foot in a heap of debt.
Staying on Top of Expenses
Consider each of your cash inflows and outflows.
The only way to commit to your promise is to get organized. As far as your finances go, this means keeping tabs and everything that comes in and out. Then, you can create a budget for the short to medium-term, and develop a healthy routine.
To do this, it’s important to ask for receipts, to keep them in order, and to log them appropriately. Otherwise, it’s impossible to tell what’s what when you’re left with a pile of paper.
Take action to monitor your credit report, correct errors, and improve your credit score. Read this article to learn about recent changes in the credit scoring process. Find out more about business credit scores here: Know Your Business Credit Score.
Wiping The Slate Clean
Sometimes, paying your taxes on time and organizing your finances isn’t enough to stay ahead.
When businesses are in a huge amount of debt, they need to pay down loans before tackling a new year’s worth of finances. It’s not nice to think about, but this is where applying for bankruptcy comes into play. If it’s your only option, a successful application will wipe away any unsecured debts.
Find more info by following the link. There are different types – chapter 7 and 13 – and you must understand which one suits your needs before filing.
Finding A Third Party
If the above sounds like hard work, it’s because it is tough. Your feelings of despair aren’t uncommon – organizing finances is a boring, drawn-out process. And, without any experience or skill in the area, you might do more damage than good.
Accountants are an excellent investment as they fill in the gaps. With their knowledge, you can cut your expenses and get money back through tax schemes and loopholes. All you need to do is to manage your receipts on a yearly basis.
Attitude
Last but not least, don’t forget to maintain a positive mental attitude. Hurdles will appear out of nowhere, yet you can jump them as long as you think clearly.
Ken Boyd
Author: Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies
Co-Founder: accountinged.com
(email) ken@stltest.net
(website and blog) https://www.accountingaccidentally.com/
(you tube channel) kenboydstl