Do you pay your staff on a set schedule? Of course, you do.
Do you pay your SELF on a set schedule? Or, do you pay everyone else first, and then pay yourself once you’re sure that you have enough money?
This way of working is one of the biggest mistakes we see from business owners.
Your staff would never work for free. Why do you?
Pay yourself first and then pay everyone else.
Click here for A Business Owner’s Guide To Getting Paid: Salary VS. Draw.
A few simple things can make a big difference in your finances and ensure that you can pay yourself regularly, as every business owner should:
- Raise your rates/prices.
- Review your finances at least once a month and make proactive adjustments instead of waiting to extinguish fires after they ignite.
- Know how much your business made and where the revenues came from, then determine where your focus should be to maximize profits.
- Take control of expenses by reviewing them monthly and making changes when needed to reduce costs, including canceling unnecessary subscriptions and services. Are you spending so much eating out that it would make more sense to hire a personal chef? Or is your weekly Uber expense far hirer than contracting a driver? Perhaps not, but follow every dollar and know for sure.
- Compare credit card processing fees and negotiate lower rates or change providers for a better deal.
- Talk to your accountant or attorney about incorporating your business.
- If you are already incorporated, then set up payroll and put yourself on it!
- Hire impartial experts to help with your accounting
- Have an accountant to do your payroll instead of a payroll service. An accountant will take in your overall financial picture and offer advice on reducing taxes and paying yourself, among other things.
- Consolidate as much as possible of your financial work with one provider. For example, we can centralize your bookkeeping, payroll, tax planning, workers compensation, 1099s, and more on a month-to-month basis with a set monthly fee and no cancellation penalties; there should be no surprises!
- Do not hire an accountant who you cannot easily reach. We are available by phone, e-mail, text, Facebook, Instagram, Twitter, LinkedIn, and more. All of our experts are there when they are needed the most.
- Don’t make the mistaken assumption that your business isn’t big enough to outsource your accounting. Now is a perfect time! Professional accountants encourage growth by helping small businesses make big decisions.
Know what’s going on with your finances! Many business owners waste money by ignoring them.
If you’re not reviewing your numbers a minimum of once each month, then at least hire a professional to do it and report back to you.
Make sure the provider you hire will available year round and not charge you for every minute that you need them for guidance or to answer questions.
Look for a provider with a team of people who can cover each other’s vacation and sick days and not put your business on hold until they return.
Response time is important, too: they should respond to your e-mails within 1-2 business days.
A good accountant is not a luxury but a necessity.
The money you spend on financial guidance for your business is more than an expense; it’s an investment in both business success and peace of mind.
Contact us for a free financial health assessment and take control of your money today.