If you are serious about running a business, you need these basic money management tips for entrepreneurs.
Money management is important for several different reasons. The two biggest reasons are that you will have to pay taxes on the money you earn, and mismanaging money can lead to you losing your business.
I suggest you consult a tax professional to find out what you can claim on your taxes as this varies from state to state.
Most tax professionals have a free small business pack that they will give you to help you get ready for tax time.
If you don’t do this, you could end up paying huge amounts of money to the IRS or missing out on some great deductions. (Trust me I speak from experience.)
5 Simple Money Management Tips For Entrepreneurs
#1 Set a budget.
You need to know what it takes to operate your business. Having a set budget allows you to always have your business expenses covered without overspending.
#2 Keep your business money separate from your personal money.
This can be done in many ways (depending on how big your business is) that range from keeping a bank bag with all your business money in it or opening a separate business checking account. This helps you be able easily to track what money is coming in and what money is going out. If you spend your business money on non-business items, you could end up losing your ability to operate your business. If you can’t pay for business supplies, you can’t operate your business.
#3 Fill out a monthly expense report.
This is a running list of all the business expenses. If the money goes out to pay for something you need to be able to track it. There are serval different ways to do this — you can use an app, excel document or just a pen and paper. This report will come in super handy when filling out your taxes.
#4 Keep your receipts…as in all of them.
You can scan them onto your computer or just keep them in a box or bag. Make sure before filling away any receipts you add them to a monthly expense report. In addition to having a separate checking account, I suggest you get a business credit card to use for purchases that you pay off at the end of the month. This allows you to use your credit card statement to fill in your monthly expense report.
#5 Keep track of your mileage.
Mileage is the #1 tax deduction for many entrepreneurs. If you are not tracking your business mileage you are missing out on the best business tax deduction. You can track your
Money Management Tips
Now that you know these 5 money management tips for entrepreneurs make sure you add them to your business plan.
Do you have a program or tip you like to use for money management?
If so drop me a comment and let me know! I would love to hear from you!
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