George Co, Negosentro | The number of small businesses across the US is on the up, and according to recent statistics there are around 28 million companies now registered. It’s certainly an exciting time for any current business owners or keen entrepreneurs, but even though going out and setting up your own firm can be a rewarding new chapter in life, it’s essential to get the business basics in order.
Firstly, you will want to start with your finances. If you can’t keep tabs on your business’s numbers then this could have a marked effect on any plans you have for further growing your venture. In fact, you don’t need to be a genius to successfully run your small business accounts, a basic understanding of finance will have you well on the way to getting your firm off the ground.
Any small business owner will need some sort of cash injection to get their business operating. However, an important question that you should ask yourself as a responsible business owner is which source of financing best suits you, and your needs: traditional financing, such as from a bank or lender, or alternative sources such as merchant cash lenders or even borrowing off family and friends. While more traditional financing is a better, risk-averse option, the time it takes to finally receive your funding can vary from weeks to almost a month. Short and quicker term fixes, such as loans, do remain high risk. If you are considering taking up a family friend on an offer, make sure that you treat this as you would any concrete business transaction. Set a date to pay back all of the borrowed capital by, and make sure that you stick to it – it might not affect your credit score, but is it really worth damaging friendship for the sake of business?
According to the US Office of Advocacy of the Small Business Administration (SBA) small business sole proprietorships pay the lowest average effective tax rate, which currently stands at 13.3 percent. So whether your firm is classed as a small sole proprietorship or as a corporation, could affect how your tax returns are calculated for each business year. It’s worth checking which category your business falls into before completing your return, and getting some help if you aren’t sure how to complete your return. Nowadays, hefty accountancy fees are a thing of the past, thanks to the development of effective and easy-to-use tax software solutions. Companies such as Ultimate Tax offer a range of solutions to help you navigate those tricky figures, click for more information. It’s essential to get your taxes in order and filed to ensure that your small business can continue to operate.
While it can be daunting knowing where to start when it comes to managing your small business’s finances, getting your accounts in order will make a huge difference to the running and management of your financial plan. From financing your dream to completing your tax returns, make sure that you have these covered so you can focus on meeting with your goals.