One of the main responsibilities you have as a small business owner is to manage your money as best as possible.
That being the case, have you stopped recently to look and see where your business is at with finances? If not, now would be a great time to do so.
Unlike larger companies, smaller ones have limits when it comes to resources. As a result, they must make sure they are cognizant of where their money goes at all times.
There are several ways businesses can get into trouble with money, ways you should be aware of.
Are Customers Taking Advantage of You?
So that your small business stays on top of its financial health, note a few important areas:
One area where too many small businesses can drop the ball with is chargebacks.
Those chargebacks occur when one decides to not follow through on a credit card payment for a sale. As such, your business can take a hit.
Note the credit card chargeback process involves you being responsible for payments. If you end up with too many chargebacks, you might even lose your credit card merchant privileges.
For you to steer clear as much as possible of chargebacks, be aware about trends with chargebacks. While an occasional chargeback is one thing, a large number of them that speak to fraud are different.
While you want a great experience for customers, letting some take advantage of you is not wise.
In the event you are renting office space, are you getting a good deal for your dollars?
Although you need space to operate, you don’t want to be getting taken advantage of at the same time. You also want to avoid having to move every several years to save money.
If at all possible, work out a long-term deal with your landlord. Although such deals can be hard to come by at times, do your best to find one.
Another option with office expenses is being open four days a week at 10 hours a day. In doing so, you can think of closing down the office on Fridays. If you want to be open per se on Fridays, you could allow your employees to work from home that day.
Also search for deals on office supplies and other aspects of your business. Saving money wherever you can will benefit you over time.
While not one business owner wants to come out and say they love the Internal Revenue Service, the IRS is a fact of life.
With that being the case, do your best to stay on top of your business taxes. Owing the IRS some money is one thing. If you end up owing many thousands of dollars, you may never get caught up on time.
Speaking of taxes, do your best to take advantage of any and all small business deductions.
Doing so allows you to lower your tax liabilities. Make sure you keep a running log of such expenses during the year. This makes for an easier process come tax time in April when you are filling out all your paperwork.
Being a solid money manager is one of the keys to running your small business.
When you have a hold of your financial responsibilities, the rest tends to fall into place.