Great Ideas for Keeping Your Small Business Chugging Along
The public seems to have the impression that anyone who owns their own business is incredibly wealthy and living an extravagant lifestyle. That could not be farther from the truth for so many who toil away building up the businesses that they have put their blood, sweat, and tears into.
Also, many small businesses do not survive at all due to any number of factors. Most of those factors have to do with the management of the funds that the business does have. Put another way, many businesses will not be successful because their owners are not properly managing the money that comes in on a regular basis.
Handling Your Tax Situtation
One of the biggest killers for small businesses is a mismanagement of taxes. The government is going to come to you with their hand held out, and you had better be prepared to pay them the amount that you owe or else face the consequences. Most would rather do just about anything but pay their taxes, but it is something that we all have to do. In order to have a less painful time of it this year, try out some of these tips and ideas.
- Make Sure You Use Your Proper Forms– It is vital to understand when you need to pay your taxes and what forms you will need to fill out to do so properly. The blog at risepeople.com explains that if you are an incorporated small business in Calgary Alberta or any other part of Canada for that matter, you will need to report your taxes on the T2 form. However, a sole proprietorship or partnership would need to use the T2125 form.
- Grab As Many Deductions As You Can– There are tax deductions galore if you start to look for them in the right places. You can grab some for yourself and take full advantage of the way that the tax code is written to make sure that you do not waste any of your money on taxes when you don’t need to.
- Keep Good Records Throughout The Course Of The Year– Yes, it is definitely a pain to have to keep up with all of your tax records throughout the entire year. Still, most would prefer to go through the trouble of keeping up with their tax records throughout the year rather than face an audit at the end of the tax year.
Waiting to Get Paid Can Be Crippling
Business owners in the Calgary Alberta area who do business with oil manufacturers, producers, exporters, etc. understand that it can take them a long time to get their invoices paid. The work has already been done for these oilfield related companies, but the invoice may have a pay by date on it that is as far out as ninety days or perhaps even more. That is an awfully long time to wait around to receive payment when you are really in need of the money for jobs that you have already completed.
There is another way to work with the system as it stands right now. This way is through something called accounts receivable financing. This is a process by which one sells the invoices that they currently have to an outside company for immediate payment. They sacrifice a percentage of the invoice as a service fee for the immediate payment, but it does mean that they get money in their hands faster than they otherwise would. The trade-off, of course, is that you lose a little bit of money for the service fee to the accounts receivable financing company, but that is a small price to pay compared to the fact that you will finally be able to afford to keep the lights on and keep operations running.
A company like Capital Now understands the diverse financial needs of its customers, and they work hard to make sure that they put money into the hands of those who require it just as quickly as possible. Capital Now lives up to their name and can have funds for your invoices sent to you very rapidly. Forget about waiting for a Net 90 invoice to reach its maturity. You can just get the money from Capital Now and let them wait out that invoice.
Have Long-Term Projects in the Pipeline
While you may have to focus on your short-term financial needs in the immediate future, you will want to make sure that you are also planning out some longer-term projects in order to keep the money flowing when perhaps some of your shorter term things have dried up. You always need to be keeping your business plans a few steps ahead if you want to end up with the best business model possible.
It is incredibly difficult to run a small business successfully for a very long time, but you certainly can do it. You just need to make sure that you are visualizing everything that needs to get done and preparing yourself for the fact that there will likely be dry periods when the money is not as free-flowing as it once was for you.
Also published on Medium.