Money Saving Tips For Small Business Owners By Freedom Debt Relief
Business owners know cash flow is the lifeline of their business. But common everyday spending habits rob business owners of valuable cash flow. In this article, Freedom Debt Relief will share three big money saving tips that will help you get the most out of your business’ cash flow.
Always Know Your Numbers
Do you carry on a regular dialogue with your business? You might be wondering what we’re even referring too. Your business speaks to you every day. You just have to listen. Here’s how.
Your business speaks to you in numbers. If you print out your financial statements (balance sheet, income statement, cash flow statement), you’ll soon find yourself immersed in an in-depth dialogue with your business. It will tell you its trends, its current state, and where you should take action to ensure growth or stave off potential bankruptcy.
Understanding the language of business takes time and education. But the more you can speak your business’ language, the more you can carry on a dialogue with it. The numbers tell you what to do. Then you do it. Come back in a month and check what impact your efforts had.
Freedom Debt Relief mentions to not just rely on financial software when it comes to managing your business’ finances. Print out your financial statements and go through the numbers by hand. Understand what’s behind them. This type of intimate interaction with your business will reap rewards down the road as you’ll have an above average understanding of how a business ticks.
Your Finances Are Not Your Business’ Finances
Do you dump all of your business income into your personal checking account and take business expenses from the same account? This kind of commingling of funds can create complexity when it comes time to go over your financial statements. Also, it doesn’t help your case for having a valid business in the IRS’ eyes.
Instead, Freedom Debt Relief says your business should have its own checking account. Did you know you can actually still get a free business checking accounts? Consider also getting a credit card for your business. These separate business accounts will be independent of your personal finances. They’ll also make compiling your business income and expenses much simpler at tax time.
Run A Frugal Business
One of the places business owners waste lots of money is subscriptions and education. Not that either isn’t of value. But when you buy a subscription or course and don’t use it, it isn’t of value and you are just wasting money.
Do an audit of any current subscriptions and make sure you are actually using them. If not, cancel the subscription. Before you buy another online course for a few hundred dollars, consider the last similar course you purchased.
Freedom Debt Relief ask how much value did you really derive from the course? Would a few books by various authors provide far more value for far less?
If your small business has racked up too much debt, Freedom Debt Relief can you build a plan to get your debt under control. Get a free evaluation from a credit counselor at freedomdebtrelief.com.