If you read my last article and prepared your financial statements it’s likely that you have a solid picture of your 2013 taxable income.
Hopefully, you made a profit this year and now you’re faced with making a good decision on how to invest it and grow your business. Having extra money at the end of the year could mean a new vehicle, better training for your employees, or an amped up marketing campaign. It can be very tempting to use the money that you know needs to go towards your tax liability to better your business and choose not to save for the payment due on March 15, 2014. This can be risky, but with proper planning you can invest in your business and still have the money that you need to pay the government. Here are Four Ways to Accumulate Cash in Your Small Business for Corporate Tax Filing on March 15th.
Consumers love to feel appreciated and needed by the businesses they patronize, and the holidays are the perfect time to show that appreciation. Offering a small customer incentive is a great way to increase your sales. As the busiest shopping season of the year ramps up, every person is looking for a great deal. Service industries could offer a discount with an annual renewal or new contract signed, a complementary service for a friend when another one is purchased, or a free downloadable e-book with tips and strategies relevant to the business. Consider what low cost gift could bring more clients this season and weigh the benefits of investing your capital in that gift. Alternatively, assess what products or services aren’t selling well and consider revamping them or giving them away in a contest or sweepstakes.
Marketing is extremely important for small businesses at every time of the year, but especially as we approach tax season. Investing your income in a larger marketing campaign could not only help you earn the money to pay your taxes, but also increase your overall income. The key here is to employ relevant marketing techniques, targeting customers who are most likely to visit your store and spend their money. Consider reviewing your marketing campaigns to your Profit and Loss statement to determine which campaigns provide a solid ROI. If you’re using QuickBooks, you can use the customizable feature to track the advertising method that brought clients to your business.
Cutting unnecessary expenses is always a good thing, but if you are struggling to come up with enough money to pay your taxes, it is especially important. Take a few days to evaluate your business and take note of any areas of excess. This may uncover some difficult truths, if, for example, you have an employee who is slacking off and costing you sales while happily taking salary. It’s important to ensure that you have good hiring practices in place so you can reduce the necessity of firing a unproductive employee. It doesn’t have to be as extreme as firing someone. It can be as simple as going paperless or switching phone service providers.
Most small businesses rely on their employees as their greatest source of revenue. If you have great salesmen, you get more business. If you have even one who routinely offends or bothers your customers, you could have money walking out the door, even if you have the best prices and products in town. A simple training seminar could be just what your employees need to refresh their skills and remind them of the importance of every customer. With better sales techniques, your employees will be able to rev up their conversions and help you prepare to pay your tax liability.
Accumulate Cash in Your Small Business
It’s important to have a plan to accumulate the cash you need to pay your corporate tax bill. Penalties and interest payments are a waste of money and an indication of poor business practices. I can help you gain control of your cash flow by setting up an efficient system and training you or your personnel on it. If you already have a system, I can help oversea it, identify gaps, and recommend solutions that improve your bottom line. Let me help unload some of the burdens of your business. Contact me today.