The first day of summer has arrived and that means the arrival of days full of sunshine and possible changes to your staffing levels and workload. For some small businesses summer can be a great time to take an important glance at your finances. Some businesses can find if they don’t it can lead to lower profits and higher taxes, as well as losing out on important opportunities that may go unnoticed.
Here are some tips to keep your balance sheet cool while the weather is hot:
Assess and Plan Your Tax Expenses: Summer can be the ideal time for your small business to assess its current and future tax situation. The first step is to calculate how much tax you will be paying on the first half of the year, and evaluate it. Take the time to see if there is anything you can do to decrease this cost and therefore increase your overall profits while you still have time. The next step is to use your first half tax expense to project your second half expenses for budgeting purposes. Things do not always go according to plan and a fluid budget can help you stay afloat.
If you find you don’t have the proper system in place or are having a hard time tracking your finances and obtaining important reports it might be beneficial to get help. Professional bookkeeping and back office support services can help to ensure you have what you need.
Evaluate Your Position in the Marketplace: Market share is one of the most effective ways of quantifying your business’s overall effectiveness, and summer can be an ideal time to take a step back and identify if there are ways that you can increase yours. Look at what other companies in the industry are doing that you aren’t, and ask yourself if you can do it better. Every dollar that goes into your pocket and not theirs is a win.
Visit Small Business Events: Summer is a great time to get out of the office and gain some valuable information for the growth of you and your company. Use online resources like smallbiztrends.com for a full calendar of events taking place around the world from the Netherlands to Chicago.
Prepare for Seasonal Business: You know your industry and company better than anyone, and it is important to be prepared for seasonal changes that can effect your finances. Take a look at the ebbs and flows in your cash flow and find ways to plan to ensure you have the working capital you need at all times.
Consider Outsourcing: Staffing can be one of the biggest challenges for any small business. To attain optimal efficiency it is important to look over your current staff and analyze whether you are equipped with the tools to grow. If you and your staff feel overworked and overwhelmed and in need of some support, one option could be to outsource back office responsibilities to a professional bookkeeping company. Things like credit services, accounts receivable, accounts payable and lien compliance are vital to the success and growth of your business and can easily be outsourced if hiring full time employees is not a viable option due to budget and other constraints. Click here for more information to help you decide if now is the right time to outsource key responsibilities.