It’s tax season and many San Marcos business owners will make their customary filings to the IRS. However, tax season is more than just time to take care of your responsibility to the IRS. This period presents an excellent opportunity to get your business’s financial house in order. Do you have business debt? Are you making the most of your business situation to lower your taxes? Have you spoken to a financial counselor and tax professional? If not, here are some of the reasons why you should.
Mapping Your Business Out Of Debt
Nearly 49% of small business owners have difficulty managing their business’s debt. One reoccurring factor in the mismanagement of debt is a viable plan to satisfy debt. Often the plan is a soft one that focuses on increasing profits and ignoring debt until that time profits are realized. This plan fails more often than not because it does not offer a clear path to debt repayment.
A better strategy is to organize your income and allocate a certain percentage to debt resolution. Once your company’s finances are dialed into achieving this goal, you’ll have an effective map to guide you out of debt.
Making The Most Of Taxes Returns
It is tempting to use a tax return refund to provide capital towards your company. Perhaps you are thinking that you can vastly increase your revenue by acquiring new equipment or establishing a web marketing campaign. While these are good ideas, if you are carrying debt it may make more sense to use your return to settle debt (there are cheaper ways to get new equipment and web marketing). Even if your entire return does not handle all of your debt, you can negotiate with creditors and have this income set aside as funds to use towards monthly installments.
Working With A Financial Pro
Business income, taxes, and debt can be a time-consuming ordeal. Our clients entrust their bookkeeping to us while they focus on their day-to-day operations. We help small businesses to identify the ways to improve their bottom line.