Call us: (724) 359-5022



Money Tips for Small Business

  • By Lauri Paxton
  • 10 Nov, 2016
If you are like millions of taxpayers trying to make a living running a small business, you know it is tough out there. Here are some money tips to help your business survive and thrive.
You need to know and understand your sales cycle.If you’re a business-to-consumer retailer that sells $20 items, your sales cycle is likely fast enough that having a cash buffer on hand is less of a concern. But if you’re a business-to-business company whose sales cycles last months, or even years, having extra capital in the bank can mean the difference between open for business and closed.
Understand your cash flow.One of the biggest causes of business failure is the lack of understanding cash flow. At the end of the day, you need enough money to pay your vendors and your employees. If you run a seasonal business, you understand this challenge. As we move into the last quarter of the year, many retail businesses use this time to make or break their year.
Keep track of sales and how customers find you.When looking at your business, there are a few big items and/or events that drive your business success. Do you know the key factors of your financial success or failure? By keeping track of day-to-day operations, seasonal staffing and trends, it helps in budgeting for 2017.
Manage your inventory.In the restaurant business – over buying can mean spoilage and lost profits. If your business sells a physical product, you need a good inventory management system. This “system” does not have to be complex; it just needs to help you keep control of your inventory. Unmanaged inventory can deplete your cash quickly. Sell off old inventory even if it is just above cost. At least you recoup your investment.
Do you know your customers?What is an ideal customer? Can you provide additional services or products? They already know you and are purchasing a product or service, ask them if there are things you can do better or differently. Will they recommend you to others?
How are you different than the competition?What makes people buy from you? Once you know who your customer is (your target audience), understand why they buy your product or service. Can you add value to your product or service?
Don’t go it alone!Successful small business owners know they cannot do it all themselves. Do you have a good group of support professionals helping you? With all the consultants in the market place, you can build your own virtual team. You will need accounting, tax, legal, insurance, marketing services and employment help along with your traditional suppliers.
Have questions, we can help. Give us a call at 724-359-5022 or email lauri@paxtonbookkeeping.net.
By Lauri Paxton 16 May, 2017
As summer approaches, you are either the type of business that thrives or pulls back for the slowdown of summer. Summer is a very hit or miss time for businesses depending on what industry you are in, and where you are located.
By Lauri Paxton 15 May, 2017
The American taxes are a pay as you go system. This means that taxes are to be paid throughout the year. Many employees do not realize this, because as an employee, your employer is withholding taxes from your pay check to continuously pay your taxes for you throughout the year.
By Lauri Paxton 11 Apr, 2017
Like many Americans, you most likely have been squirreling money away for years to prepare for the day that you will be able to retire.  We always tell people that you are never too young to start to save for retirement.
By Lauri Paxton 10 Apr, 2017
Are you one of those who are quickly approaching the deadline to file your taxes on April 18 th ?  Don’t panic because you are not the only one.  If you are avoiding filing your taxes based on not being able to pay the full amount you owe, you may want to rethink your strategy.
By Lauri Paxton 16 Mar, 2017
The phone rings. You see a number that you don’t recognize, but pick up the call anyway. An agent claiming to be from the IRS says that you owe back taxes and threatens to arrest you or file a law suit against you if you don’t make an immediate payment over the phone. Thousands of Americans faced this exact situation in 2016. This is a prime example of an IRS scam.
By Lauri Paxton 15 Mar, 2017
If you are one of the thousands of people who started to drive for ride share companies such as Uber or Lyft, then this may be the first year that you are filing your taxes as self-employed. You have enjoyed the ability to make your own schedule, work when you want, and make decisions to help improve your income. But what does all of this mean for your taxes?
By Lauri Paxton 13 Feb, 2017
When you go to your doctor there is a baseline where your medical team will start to determine if you are healthy or if you are in need of medical attention.  Vitals such as blood pressure, temperature, weight, cholesterol etc. are monitored regularly.
By Lauri Paxton 10 Feb, 2017
As the New Year has gotten underway and you finish your tax preparation, it is time to look ahead to the remainder of 2017 and beyond. While all of your company’s financial information is fresh in your head, it is a good time to look back at how far you have come and plan for the next few years.
By Lauri Paxton 20 Jan, 2017
As an entrepreneur you have probably found that traveling is an inevitable part of growing and running your business.  How you spend your time traveling can have an impact on your productivity.  Whether you are running down the street to a meeting or traveling across the country to work with a client, smart and efficient traveling can help to better use your time and keep your company growing.
By Lauri Paxton 19 Jan, 2017
Are you one of the 55 million people in the United States that freelance for a living or freelance as a side job? According to the Monthly Labor Review, the freelance surge is the Industrial Revolution of our time. Some common freelance jobs include technical jobs, professional services, graphic design and professional writing. If you are one of those people who work for themselves, do you consider yourself a business owner or do you consider your side job a hobby?
More Posts
Share by: