Do you ever have those “Shoot, I wish someone would have told me that!” moments? Yea, us too! We are here to unlock and share a few secrets from our accountant that made us go “Oohh”.
First up, Secret #1: Create a reserve savings account.
Just like financial advisors suggest a 6 month reserve for your personal savings, you should adopt the same methodology for your business. Set up an automatic transfer each month, start small, $100 here or there and then work up to 10% a month if possible.
Why? Well, imagine you are a hotelier and there is a water leak in a guest room and suddenly you need to replace the carpet unexpectedly. Or if you are a restaurant and all those ovens and stoves that are depreciating quickly will need to be replaced eventually. This is the trick to make sure you are not caught empty handed when you need to plan for upgrades or plan for the unplanned, so to speak.
Secret #2: Another one we are stealing from our personal finances is to choose a credit card with excellent rewards!
Spend wisely on this card to cash in on those rewards. This can be used for cash back to reinvest into your business. Or maybe some air miles for an upcoming trip!
Secret #3: This is the most tactical and maybe practical tip from our accountant…Set up alerts to notify you when taxes change.
If you are in California, like us, you can do that here https://www.cdtfa.ca.gov/
Make appropriate updates to your pricing and sales system when you receive these alerts so you are not under charging customers and end up owing Uncle Sam more than you are collecting.
Consider our mind blown. Well maybe not blown, but we definitely scratched our heads and silently said to ourselves…Why didn't I think of that? [Palm to face] We hope you use these trade secrets to stay ahead of financial goals and keep your business alive and thriving!
We have more where this came from. If you want to talk further about your revenue operations and your business’s top and bottom line financial goals, send us a message.