It takes capital to start a new business. From inventory, to rent, to payroll, new business owners face expense after expense. While you do have to spend money to make money, you don’t need to go into the red before your business gets off the ground. Our tips will help you make smart expense decisions.
1. Prioritize Daily Tasks
The more productive you are, the more time and money you save. Small Biz Ahead suggests that you help yourself achieve more by choosing a productivity system, making to-do lists, or using productivity apps and tools. The key is finding the right system and tools for your personality, goals, and business needs, and using one or two of the best rather than purchasing and downloading everything available to increase your productivity.
A few of the daily tasks necessary to stay on top of expenses involve finance, bookkeeping and purchasing. To ensure your business gets off to a good start, know exactly how money flows in and out of it. Compile and read your daily financial reports and use the information in them to make better decisions.
Bookkeeping is an absolute must when it comes to a new business owner’s daily task list. Records of your day-to-day finances should be at the heart of your decisions. You’ll also need this information to compensate employees and fill out tax forms. Specifically, you’ll need to enter and organize purchasing information and revenue information in a ledger or database. You’ll also need to track accounts payable and receivable and write paychecks and manage payroll information each day.
Purchasing tasks also are a must so that you have enough inventory on hand to keep customers happy. Your supplies and materials must be in stock, so you can keep your doors open. Each day, keep inventory records to track what you have, organize stock to make it easier to know when to reorder, and order supplies and materials.
These sorts of tasks will likely take up a significant portion of your day, which could eventually equate to you burning both ends of the candle. To avoid overwhelm, consider hiring a virtual assistant to help with day-to-day tasks like scheduling, calendar management, data entry and so on. Online job boards can point you toward a variety of professionals to choose from with the experience to jump right in.
2. Use Inexpensive Services for Shipping
One solution to keeping enough inventory and supplies on hand is using ePacket delivery for shipping. ePacket simplifies purchasing products from China. This shipping service was designed for e-commerce and makes it more affordable and quicker to receive purchases from businesses that ship from China and Hong Kong. ePacket delivery also allows for faster delivery and easy tracking of international shipments, so you’ll always have your finger on your items.
3. Stay on Top of Tax Responsibilities
As a new business owner, you must realize that tax responsibilities fall to you. The best thing that you can do for your business taxes is separate your business and personal accounts. As CNBC points out, it is much easier to keep records and prepare tax filings when you handle personal and company expenses in separate accounts. Different accounts also simplify the process of preparing for an audit. Another smart suggestion is to open a credit card designated only for business expenses.
You also need to record expenses and taxes as you go to save time and reduce the risk of accounting errors. Set aside time each day to track expenses, file receipts, and record payments. Consider using a software solution to calculate monthly income taxes and file reports when you make new hires. Then, choose an accounting software to track expenses, record invoices and payrolls, and avoid falling behind with your bookkeeping. Better yet, contract with Campbell Consultants PA to get the help you need with bookkeeping and accounting services so you can focus on the bigger picture.
You can make smart business decisions as a new business owner if you prioritize daily tasks and focus on productivity. You also can save money with inexpensive shipping and logo making services. Start keeping daily records using software, apps, or other tools to avoid financial issues or realize they aren’t as dire as they may have seemed.
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