3 Sound Strategies on Giving Your Business a Financial Summer Cleaning
We are in the midst of a hot summer and perhaps, it’s a good time to review a few things in your business that will help give you a strong mid-year finish. Here are three sounds strategies for your business:
- Are you in the green? IF not, you need to stay in the Green!
As a business, the two critical pieces to staying alive and running are: Your profit and how much cash you have in your bank. Now is a good time to make sure you are profitable and are maintaining a health cash flow.I’ve always advised my clients, whether they are large or small, to check their accounts receivable (AR) at least once a week. This gives you a heads-up on how much growth you are projecting for the month and whether you are healthy and in the green. Additionally, carefully review if you are leaking cash in your business in terms of expenses. Line of credits are generally helpful in case you need to fill in any gaps.As a rule, you want to make sure your financial advisor or a business concierge like us to ensure you are on track and whether you need to tap into any resources for your business growth.
- Business Expenses
Expense in business is common; however, you have make sure you are reviewing all of your expenses. Taxes can be a major expense in your business and we recommend that you get together with your accountant or business tax specialist to make sure you are filing the right amount. A sound strategy is to separate a small amount of your profits and place it in a separate bank account for tax purposes. This will help you not feel a pinch when it comes to paying your quarterly or yearly taxes.
- Always review your business plan
We highly encourage our clients to have an established business plan. If you don’t have a business plan, we can assist you with creating one; however, for starters you can search for general templates if you are a brand new business. Make time to review your initial goals and see what are some of the priorities outlined in your plan. This will help you save some time and money for the long haul.
Donald M Fink has been advising and helping high income individuals and business owners with strategies for over 40 years. He continues to consult with private clients in the areas of estate planning, wealth management and asset preservation and to this day maintains Life & Qualifying membership and Honor Roll status in the Million Dollar Round Table (MDRT).