Business Finance Hacks You Need to Know About
Business finance tips you need to know about. Managing your business’s financial information is incredibly important for any company. It’s important for any business owner to know precisely where their money is going and if it’s being spent effectively. Implementing some of these “hacks” can help you manage your money faster, feel better before tax season, and assist in your budgeting procedures.
Keep it Up to Date Daily
First, you need to continue looking at your financial data if you want to manage it. Sometimes stressed business owners will avoid checking their bank statements because they don’t feel comfortable with what it shows. However, this debilitates your actual ability to pay things off and feel confident about your finances.
Instead of writing huge chunks of financial information at a time, make it a daily habit. This can take the pressure off of you and prevents any unexpected problems with your accounts. While you can use one of the numerous financial calculator apps and programs, you can also write it down by yourself or use an excel spreadsheet.
This might not seem like a financing hack, but it is actually an extremely powerful tactic. By bringing on contractors for targeted tasks you are able to level the combined knowledge and experience of experts in certain fields without the costs of having full-time employees. Keeping your financial information updated can be quite the hassle, and it can be even more frustrating when you are trying to do taxes in April.
Since you might be busy with other important parts of your company, it can be smart to outsource the project to a firm. Accounting firms can cost quite a lot, but it can be worth it in the end.
An outsourced CFO helps with all aspects, including saving money, bringing more expertise, and prevents costly mistakes. They can minimize the amount you need to pay in taxes, find you sweet deals on different products, and steer you in the right direction if need be.
Keep Your Records
Last, you should keep your government records for at least five years. You never know when the IRS will want to audit your company’s money. For this reason, the government itself recommends that you store precious financial documents somewhere safe. While a filing cabinet will do, there might be other ways in which you can store the business finance records.
- Always keep receipts, bank statements, invoices, payroll records, and any other documentary evidence that supports an item of income, deduction, or credit shown on your tax return.
- Most supporting documents need to be kept for at least three years.
- Employment tax records must be kept for at least four years.
- If you omitted income from your return, keep records for six years.
- If you deducted the cost of the bad debt or worthless securities, keep records for seven years.
- Go paperless, store everything electronically, and always make backups.
- Expenses that are less than $75 or that have to do with transportation, lodging, or meal expenses might not require a receipt. But you still need to tell the IRS where and when the expense occurred, and what it was for.
- Even if you don’t need a document to do your taxes, you might need it for something else. When it doubt, keep it.
Digital record-keeping is becoming increasingly common. Not only do you not have to buy more storage space, but using cloud services can make sure you never lose a document again. See what your company can afford, and you’ll never be stressed about finding your papers.
Your business can soar high with clean financial documents in tow. Keep things organized and updated, and if you ever need to, pass the work to someone else. You’ll never need to worry about your business finances again.
Read this next: 3 Tips on Growing Your Small Business
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