Polls have revealed that most Americans dream of starting their own business, and it’s really no wonder why. Business ownership provides a lot of freedom for entrepreneurs. You get to work where you want, when you want and with whom you want. You get the freedom of choice, the freedom to travel, and the freedom to spend more time with your family and loved ones. However, it’s not easy running your own business. It’s a lot of work and the little details can feel overwhelming to new entrepreneurs.
One of the trickiest concepts to grasp as a new owner of a small business is how to properly manage your business expenses. It’s important to have a business mentor, accountant and financial advisor you can turn to for help with all of your questions about business expenses and finances. Of course, as a business owner, you probably feel driven to seek answers to your questions on your own, too. If that’s the case, this is the article for you.
Here’s some advice for new business owners on how to be smarter about managing your business expenses:
Determine Daily Priorities
Some of your expenses can be easily managed by turning them into daily priorities. For instance, you might devote a certain time of day, whether at the start or end of the day or right before your lunch hour to tracking your business expenses for that day. If you prefer, you could even use one of the many apps that will help you track business expenses. Yes, there’s an app for that.
Stay on Top of Tax Responsibilities
Nobody likes to think about paying taxes but, unfortunately, it’s a quarterly requirement for business owners. Be sure to make quarterly tax payments on time and from a separate business bank account to avoid penalties, audits and owing too much at the end of the year. Consider finding a trustworthy business accountant to help you if this feels overwhelming or too tedious for you to handle on your own.
Understand When to Worry – and When to Relax
Although business financial issues can be anxiety-inducing, not all of them need to be cause for panic. Some business-related financial issues aren’t as dire as they might appear at first glance. These include:
Spend Less on Expenses
Expenses add up quickly in the business world. However, by doing a bit of research, you can cut some corners. For instance, if you run a business that requires you to ship items to other places, you might be able to save money on shipping costs. One option for entrepreneurs is using a service such as ePacket delivery for shipping. ePacket allows for faster delivery and easier tracking of international shipments while also saving you money in the long run.
According to Entrepreneur.com, the businesses that see the most growth are the businesses that have a sound infrastructure in place. Determine how each aspect of your business will run and how you’ll do things each day in a structured, organized way. Hire a business mentor or advisor to help you determine your infrastructure, if needed.
Running a business can be stressful at times but managing your business expenses doesn’t have to feel overwhelming. Much of what you’ll do as a business owner are simple tasks that can easily be worked into your daily routine. By following the advice above, you’ll be setting yourself up for success. However, this advice is only meant to get you started. It’s still important for you to meet with trained specialists, such as business accountants and financial advisors, who can ensure you’re making the best decisions for the longevity of your business. Each situation is different and these trusted professionals can help you proactively address your businesses’ unique financial needs.
- Lucy Reed (Guest Writer)