To keep your business alive during its first year, you must learn how to spend your company's money wisely. Your objective is to scrimp on what is not important in order to buy what is.
Many new entrepreneurs are lured into equipping their new office with every imaginable piece of office furniture and equipment. They buy everything new, often because it is faster to walk into a Office Max or Office Depot and go up and down each isle, like a kid in a candy store, than to really shop hard to find deals, used equipment and garage sale items.
Stop! We are not talking how to spend your weekly allowance of 1.00 here, we are talking some real money--often in excess of 5,000 by the time you throw in the purchase of a new computer.
But new business owners also often end up paying more cash than they need to because they keep such poor records and do not use qualified tax advisors.
They end up overpaying their business income taxes, which amounts to a gift to Uncle Sam.
To receive the maximum benefit from each hard-earned dollar you either invest or earn you must be eternally vigilant in two financial activities: reduce expenses and lowering your taxes. Let's look at some practical ways to save money.
Saving on Expenses
- Automate your business records. Use one of the powerful small business accounting programs on your computer to organize expenses so you can compare them over time and try to reduce them.
- Avoid troubling customers.
Author: Jeff Williams
Copyright 2009 StartupNation, LLC
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