Deep cleaning isn’t only meant for your home, your business needs it too. Its not only time to de-clutter your office or take inventory, but also to get financially organized. Take some time to review expenses, manage cash flow and revise business plans. Every business owner will benefit from cleaning up and give their business a breath of fresh air. Let’s take a moment to discuss some ways to stay on track in this new year.
Business owners should start by restoring business expenses. Since you are responsible for filing taxes on a quarterly basis, it is important to stay on top of your expenses and be on track with your taxes. You can stay by creating a separate bank account strictly dedicated to your business’ taxes and use it to set aside monthly deposits which coincide with your projected taxes. If you don’t already do, having your business checking and savings separate from your personal accounts will prove to be beneficial when doing your taxes. If taxes are still a foggy area for you, consult a tax specialist who will be able to advise you and help find the right method of calculations for your business.
Profit and available cash are two major components in order to keep a business running. This new year can bring much change and prove to be a great time for growth, make sure your business is profitable and sustaining a healthy cash flow. A great way to make sure this is happening is by checking weekly cash flow and whether the money coming in is moving or stuck in accounts receivable. Take a look at when there is an influx of cash and when expenses arise to identify gaps and plan accordingly. This will also help you plan for challenges your business might face in the future and keep you covered.
Growing business’ usually tend to reach a point where it needs more cash than it has available. This is a great time to consider a business line of credit or a small business loan. Acquiring one of these will help to bridge the gap and help your business grow financially. For example, when quarterly or yearly expenses arise, having a line of credit will help you cover these costs and keep a healthy cash flow year-round. Consider meeting with a banker or pursuing a loan with a third-party lender to review your finances and assess your credit needs.
Now is the time to do a quick review of your formal business plan and make some chances in accordance to the growth of your business. Consider setting aside time to make changes to your business plan or create one. This document is used as a guide throughout the lifecycle of your business and is crucial when you are growing. Having an effective and updated plan will help business owners prioritize their decision making and create reasonable goals for the company. A good business plan can help assess potential risks and predict future obstacles.
Taking the time to give your business a deep cleaning is a great way to not only grow but stay ahead of the game within your industry. By updating your business plan, organize finances, and manage cash flow, you’ll see that you will be better prepared for this new year with a clear mindset and ready to succeed in your industry.