If you’ve been in business for a number of years, there is likely some financial details you haven’t thought of lately. Tax season is creeping up on us, and now is the time for your company’s annual checkup. Day to day action is the majority of what you deal with, but it is important to take a step back and look at the whole picture occasionally. Here are 4 ways that you can check on your financial health.
CHECK ON YOUR DEDUCTIONS, REFUNDS, AND REBATES
Almost all small businesses can benefit from different types of deductions, refunds, or rebates. Many small business owners, however, are not aware of what all of them are, or of how much they can benefit a company. When you consider that these are all ways to save or earn money from the government, it becomes clear why this is an important strategy. Everything from your staff’s salaries to mileage reimbursement, to equipment depreciation, can gain you some extra money or deductions on your taxes. A qualified, professional accountant or bookkeeper can help you find the best deductions for your situation.
REVIEW EMPLOYEE BENEFITS
Taking a look at your employee benefits package, including health insurance, vacation time, and other benefits, can have a big impact on your company’s finances. Start out by assessing if you are offering the most cost-effective package you can. Then look at how to tweak it. Can you afford to offer better benefits? Perhaps a slightly more expensive health insurance plan can lead to happier and healthier employees, and ultimately be a benefit to your company. Think outside the box, and don’t be afraid to run your numbers through a variety of scenarios.
MATCH YOUR CURRENT FINANCES TO YOUR BIGGER GOALS
Make sure that your current financial situation is in line with your company’s goals, both short and long-term. Is your plan to have a certain net income each month? Where do you stand right now in terms of that goal? Is your plan to purchase a new building within 2 years? Are you currently on track with being able to make this happen? Whenever you are reviewing your finances, you should always have these goals in mind, and always be looking for ways to ensure you meet them.
DON’T FORGET ABOUT YOUR PERSONAL FINANCES
It’s accounting and bookkeeping time for both small businesses and families. Make sure that you set some time aside to check on your personal finances as well. You don’t want to forget to file your individual taxes in April because you let them fall to the side while focusing on your business. Set aside some time to focus on the personal side of things and make sure you are prepared.
Regardless of how long you have been in business, or how you came about being the accountant of the company, you will need to keep track of your finances on a regular basis. Having accurate, timely information about your small business finances is the best way to ensure you are set up for success. If you don’t want to spend your time balancing the budget and are looking to outsource your small business bookkeeping, taxes, or accounting services, or are looking to hire a professional accountant or bookkeeper, contact OnTrack Accounting today!