Spring Cleaning for your Small Businesses Finances
Spring represents growth and new beginnings. Spring cleaning for your business can be done in many different ways, but one that shouldn’t be forgotten are your finances. Here are 4 areas to look over when tidying up your business up for spring:
Here are 4 tips regarding finance spring cleaning
1. Review your business expenses
Keeping accurate records of your business expenses is key. It helps identify areas where you could simplify or streamline expenditures. For example, rent, marketing, payroll, and inventory are all necessary business expenses; but you should identify other areas which may be too costly to maintain at the same rate like business meals, entertainment, reoccurring and un-used subscriptions.
It’s important to track all incoming revenue as it relates to spending to see the big picture. If you’re not tracking everything accurately and consistently, you may overlook redundant or unnecessary spends. Though it can be tedious, monthly reconciliation is critical.
2. Update your budget
A detailed and realistic budget is one of the most important tools for guiding your business. A proper budget will identify available capital, estimate expenditures, and anticipate revenue. Spring is an excellent time to look into your budget to see if you need to make adjustments for the future. For example, if you want to expand into a new market, develop a new product, or launch a new marketing campaign, you might need to cut back in certain areas to help cover those new expenses. You may also want to finance a costly piece of equipment that could grow your business. To do so, you may need to revise your budget to make room for a monthly payment.
An important thing to note is if you stay on top of your budget month to month, then going through it thoroughly in the spring will make it not so much of a dauting task.
3. Evaluate Marketing Strategies
Marketing is a vital component for any small business, for obvious reasons. It is the way you communicate and sell your product to its audience.
When evaluating your marketing efforts there are many things to consider, but the most important is to identify areas where your marketing efforts are not generating a positive return on investment. Perhaps it is time to move those funds elsewhere, where you can create a positive return.
For instance, consider new ways to market your product or service. Staying up to date on new ways to market your business is key and will create the biggest return. You want to be able to reach your audience in way that’ll strike their attention.
4. Tax Season
With tax season approaching, now is a great time to get all your financial documents in order and ready to file.
Filing taxes isn’t always a straight forward process. This is a good time to sit down with your accountant and go over your small business finances, and any new tax rules and laws to make sure everything is squared away. It is crucial to file your taxes on time to avoid any penalties.
We have unsurpassed response times and our clients notice how simple & efficient a financing activity can be working with us. Acquiring new equipment isn’t always the easiest, but working with Brickhouse capital—we will keep your goals in mind. With over 18 years of experience and our supportive customer service we can help you with your equipment needs to grow your business. Start the conversation today