Ways Your Small Business Can Save Money This Holiday
Spend for Small Business Within Reason
One thing small businesses tend to do during the holidays is overspend, but saving money is much better. It’s ok to be generous, but not if it will put your business operations at risk. Make sure you can afford the bonuses or gifts you’re giving. Make sure that you have a budget for the holiday party. Just because you set a budget, doesn’t mean you need to use the whole thing either.
Don’t Fall for Small Business Holiday Advertising
New year equals new stuff, right? It doesn’t have to be the case. Many retailers push overstock and put poorly selling items from the year on sale at the end of the calendar year just to get rid of it. If you really need something that is on sale, go ahead and take advantage. But if you didn’t know you needed it before the sale, odds are you probably don’t.
Save Money for Small Business Taxes
Another common thing we see at this time of year is businesses making big purchases to get bigger tax deductions. There are several problems with this. If what you’re buying is an asset, you’ll be using a significant amount of cash, but the tax deduction will be taken over time and you’ll still have a tax bill. Even if what you’re buying is an expense, you’re saving pennies while spending dollars. Why spend a dollar to save thirty cents?
There can also be hidden costs to making purchases at the end of year – such as inventory carrying costs or delivery charges – that don’t get considered. Generally speaking, if you have a profit, be grateful! Paying taxes isn’t a bad thing, it means you’re making money.
Think to Save Money for Your Small Business
Long story short, think about your purchases. Is it really necessary? Is the purchase in line with your business goals? Or are you just spending money to save money? Or worse, have you been taken by advertising?
Contact KATA Today for all your accounting and tax needs