Log In
Mazuma is now Vyde
learn more..

Resources

Category: Business Accounting

Cut Business Costs

20 Quick and Easy Ways to Cut Business Costs


Running a business costs money, there is no doubt about that. The natural ups and downs of any business allow entrepreneurs to spend sometimes and require them to save at other times. Here are some tips on cutting business costs when it’s time to pinch those pennies:

  1. Print less. It’s no secret that ink always has been and always will be expensive. But that’s not the only cost to printing for your business. Printing less saves money on paper, printer maintenance, and electricity. Not to mention less paper to mail.
  2. Hire interns. What could be better than free labor? And who knows, maybe a new intern could end up being the most profitable part of your growing business. You can find more information on starting an internship program here.
  3. Outsource work. Graphic design, accounting (of course we would say that!), payroll, scheduling, customer service SEO, and more! You can outsource it all. That doesn’t mean you should, but figuring out which tasks could save you big time to outsource could also save you big money.
  4. Find ways to advertise for free. While paid reach on social media tends to reach more potential customers, you can still grow your online presence organically and without spending a dime. Utilize Facebook, Twitter, Pinterest and Instagram, to share the latest happenings of your business with the following you already have. Another way to advertise for free is to solicit referrals from current customers and post them on your website.
  5. Use email when possible. When sending simple messages, like greetings to new clients and requests to vendors, do it electronically. Small costs like stamps, envelopes and paper can add up fast, so cutting the little things can make a big difference.
  6. Negotiate lower prices with suppliers. Most suppliers are open to the idea of negotiating prices rather than losing a customer. Even if they don’t come down in price, it is worth a shot.
  7. Pay invoices in full and early. Many companies offer a discount for paying large invoices in full and early. Ask if the vendor offers any discounts for those payments and then take full advantage of the opportunity to develop a good business relationship.
  8. Allow employees to work from home, if possible. Telecommuting saves on office bills like electricity and other utilities. You may find that having the office completely closed at least one day a week saves you big on company expenses.
  9. Buy used equipment. Used equipment can save you up to 60% of full-priced office equipment. The same goes for software. Buying a program that has only recently been replaced by a newer version can also save you a lot of money.
  10. Hire temporary employees. Know when your busy seasons are and hire temporary employees to fill in during those times. Be upfront when hiring and let the employee know that the work is seasonal, so as to keep up your good reputation as an employer.
  11. Clean up your mailing list. Stamps, ink, and paper add up, so keeping your mailing list to only active and verified names/addresses is one way to save at least a few dollars each month.
  12. Piggyback your advertising. Rather than sending out an advertising mailer separate from your monthly invoices, have the advertisement printed on the back of the invoice, or at least put the two in the same envelope. Not only does this cut the costs of mailing, it saves manpower by completely eliminating the separate tasks of sending advertisements and invoices.
  13. Hire your children. It’s a win-win situation really. Learn more about hiring family members here.
  14. Keep every receipt and record every deduction. Not only does this help you know where you’re at spending-wise, it helps you claim the most deductions and save the most money during tax season. Read this post for a few quick tips on tracking deductions for your business.
  15. Negotiate a lower credit card rate, or shop around for a new credit card.
  16. Form a buying alliance. Join with another business or a trade association for bulk purchasing discounts.
  17. Stretch your budget with barter. If you have the time, there is almost always someone willing to trade what they offer for something you offer. Trade marketing, design, photography, accounting, construction, and more. All you have to do is ask.
  18. Seek multiple bids on everything. While you might feel loyal to a certain contractor, if your budget is tight you may consider shopping around and seeking other bids on the same type of work.
  19. Keep close track of your competitor’s costs. Knowing what your competitors charge will help you set your prices just right. You may find that you can raise your prices a fair amount without losing current clients or slowing your growth.
  20. Reevaluate your insurance coverage. Contact your insurance agent and see what you can do to reduce monthly premiums. It may involve increasing your deductible, but doing so may save you money in the moment.

negotiate prices with suppliers for my business

Frequently Asked Questions:

Why print less for my business?
Printing less saves on ink, paper, maintenance costs, and electricity, reducing overall expenses significantly.

How can hiring interns benefit my business financially?
Interns offer free labor and could potentially become valuable assets, aiding in business growth without immediate financial outlay.

Why outsource tasks for my business?
Outsourcing tasks like graphic design, accounting, or SEO can save time and money, allowing focus on core business activities.

How can I advertise for free for my business?
Utilize social media platforms, solicit referrals, and utilize email communications to reach customers without spending on advertising.

Why negotiate prices with suppliers for my business?
Negotiating prices with suppliers can lead to cost savings, as most are willing to adjust prices to retain customers, improving your bottom line.

Summer Business Trip

Turn Your Summer Business Trip into a Family Vacation

Question:  I’m headed to a vacation hot spot on a business trip this summer and I’d love to enjoy it while I’m there. How can I bring my family along while keeping this a work trip, and share the expense? What are the rules?  Answer: You can have your cake and eat it too! Grab your flip flops and beach towels and surprise the family with some summer fun. Here’s how to make it happen.

To claim deductions for a business trip turned family vacation:

– Keep all of your receipts from a business trip. For easy and organized tips on doing this, visit this post.-Set up your out-of-town meetings for late in the week and early into the next, giving you time for family fun over the weekend. The IRS frowns on one or two days of meetings, with five days of fun tacked on the end; but, by scheduling it over a weekend, the longer trip is necessary.– Separate business expenses from personal expenses. For example, you can write off your airline ticket, but not your family’s so you’ll need to book them separately or separate the expense in your books. You’ll also need to split the meal checks, tickets for entertainment, ball games, shows, and other things that cost money on the trip. You can deduct those expenses for yourself, but not for others. Your family and friends are not considered “essential” for the business trip.– If the trip is primarily business, your expenses to and from the destination are deductible. If it starts as a planned family vacation and you add a little business in at the last minute, transportation to and from the destination is not deductible. However, if you drive to the meetings instead of fly, your miles driven are tax deductible, regardless of whether you have the family along.– If you spend less on transportation by staying until Saturday, the IRS has indicated it will generally consider that extra stay time as a business expense.– Meals are only 50% deductible, even if they’re business meals.– If you doubt it is a business expense, it probably isn’t. Remember that business expenses should be ordinary and necessary, even when traveling. Scuba diving is hard to justify as a business expense, no matter how much business talk is done underwater. Keep in mind that the IRS is vigilant about tracking expenses while on a business trip. Plan on a bit of extra preparation and work to make it happen and don’t forget the sunscreen when you go!

Health Insurance

4 Questions Small Business Owners Should Ask Before Offering Health Insurance

Small business owners with 50 or less employees are not required to offer health insurance to their employees under the Affordable Care Act. However, if you fall into this 50 or less category, that doesn’t mean you shouldn’t offer health insurance benefits. There are just a few questions you should ask first:

  1. How much can you afford to spend on health insurance for your employees? Keep in mind that if you offer health insurance to your employees, you don’t have to carry the cost alone. Typically health insurance premiums are split between the employer and the employee and you can be responsible for anywhere between 0 and 100% of those costs. As a general rule, though, most employers pay around 50% of the premiums for their employees. According to a Kaiser Family Foundation study, the average cost of a group health plan was about $6,000 in 2014. This would come out to be around $3,000 minimum per employee. This price fluctuates greatly between the different types of plans, so it’s best to do some research of your own before deciding whether it’s in your budget.
  2. Do your employees need health coverage? Rather than just assuming your employees want health insurance benefits, you might be better off to simply come out and ask them if they’re interested in employer-provided coverage. If you only have a few employees on your team, there’s a good chance they have health insurance through their spouse or a private plan that they’re happy with. It’s best to have an open and honest conversation with your employees about their current coverage and find a situation that suits you both.
  3. Will you need to offer multiple types of plans for your employees? If a one-size-fits-all plan will work for your employees, that keeps things simple. However, if your employees are diverse in age, expecting to have children in the near future, or deal with a chronic condition, they may require more individualized plans. Some employees may be happy with paying higher premiums each month, especially if they require frequent care, while others rarely visit a doctor and want to pay the lowest premium possible. These are just a few things to take into consideration before deciding on which health insurance plan to offer your employees.
  4. Can your employees handle purchasing health insurance on their own? There are a number of advantages and disadvantages to employer-provided health insurance for employees. If your employees seem happy with purchasing their own or using their spouse’s insurance, that might be the best and most cost-effective situation for your company. You might even prefer to give your employees a stipend, rather than offer a group plan, so they can buy insurance on their own but still feel valued by their employer.

As your company grows and changes with time, you may decide you need to offer health insurance to your employees. It’s best to reevaluate your benefits on a yearly basis and update them as needed.

9 Ways to Negotiate Better

Good negotiators know it’s not all about winning. Great negotiators understand that the best case scenario almost always involves a win for each party. The goal of any worthwhile negotiation is to leave both sides with a feeling of value and a mutual benefit. Successful negotiations require a bit of planning, prep work, and compromise.

Here are 9 quick tips to help you negotiate better.

  1. Clearly define your goal(s). Don’t turn a good negotiation into a battle of pride. You can do this by deciding beforehand what terms absolutely have to be met, and which are optional. Do your homework to see at what point continuing to negotiate begins to cost you or your business too much time or money. It doesn’t hurt to write the non-negotiables out on paper for a quick reference and reminder.
  2. Determine the value of everything that is at stake. Decide beforehand what is of value to you, and what you’d be willing to budge on. If you’re negotiating the terms of a promotion, for example, you may decide that accepting a slightly lower salary with a full range of benefits is more beneficial than a higher salary with lesser benefits.
  3. Establish ground rules. It’s a good idea to set some ground rules before entering the negotiation with a quick email or phone call. This is especially true if you feel that the person you’re going to be negotiating with is less than honest or may have difficulty communicating with you.
  4. Don’t make the first move. Avoid giving away more than you need to by holding back a bit and allowing the other party to speak first. You don’t know what their aspirations are and it’s best to get those out on the table before you begin to define yours. Talking too much could leave you worse off than talking too little.
  5. Don’t give up something without getting something. Negotiating is a give-and-take process, and the key to any successful negotiation is a foundation of trust and communication. When a party asks for a concession, respond with “what will you give in return?” before you make your decision.
  6. Give a little, but not too much. Again, successful negotiations benefit both parties. Avoid giving away too much in order to impress or keep a client/vendor/customer on the line. If you feel that too much is being asked of you in the negotiation without any benefit on your part, it’s okay to take the time to reconsider or even walk away.
  7. Don’t overreach. It’s never a good idea to go into a negotiation with wild aspirations and far-fetched demands. Keep in mind what you’re realistically going to gain in the negotiation, and shoot for that. Put yourself in the opposite party’s situation and consider what you’d do if you were being asked the same.
  8. Focus on what you will do. Keep the conversation positive and shed light on the will-do’s and can-do’s rather than the negatives. Try to avoid saying “no” outright, but rather wording it as “I will do this, if you will do that.”
  9. Don’t be afraid to walk away. Remember the bottom line and stick to it. It’s not much different from buying a car. No matter how good of a deal the salesman says he’s making you, no matter how many extras he throws in, if he won’t come down to the price you want, it’s a losing deal on your end.

negotiate better

Let us know how these tips have helped you negotiate better. Do you have any other tips that can help in negotiations?

Frequently Asked Questions:

Why is it important to clearly define negotiation goals?
Clear goals prevent negotiations from becoming adversarial, helping both parties understand what’s essential for a successful outcome.
How do I determine the value of what’s at stake in a negotiation?
Evaluate priorities and alternatives to determine what concessions are acceptable, ensuring a balanced and beneficial outcome.
Why should ground rules be established before negotiations?
Ground rules foster transparency and facilitate productive discussions, especially in potentially challenging or dishonest interactions.
Why avoid making the first move in negotiations?
Allowing the other party to reveal their aspirations first provides valuable insight and prevents overcommitting or revealing too much too soon.
Is it advisable to walk away from a negotiation?
Yes, knowing your bottom line and being willing to walk away reinforces your position and ensures you don’t settle for unfavorable terms.

Accounting Terms Every Small Business Owner Should Know

Top 10 Accounting Terms Every Small Business Owner Should Know

Accounting Terms Every Small Business

As a small business owner, you’re not expected to know the ins and outs of accounting…until you are. It isn’t until some kind of financial crisis happens that many small business owners are hit with the hard reality of what they don’t know when it comes to their books. We don’t expect you to know every definition in the accounting dictionary, but here are the top 10 accounting terms every small business owner should be aware of:

  1. Net Income: (AKA profit!) This term is sometimes referred to as ‘net profit’ or ‘earnings,’ but no matter what you call it, your net income is what’s left after your all of business expenses are subtracted from your earnings.
  2. Balance Sheet: A statement of the company’s financial position shown in terms of assets, liabilities and ownership equity for a specific period of time. This is a snapshot of the small business’ current financial position. The difference between the total assets and total liabilities is known as the company’s net worth. Basic accounting rules tell us that a company’s net worth must be equal to the assets minus the liabilities. We talked about balance sheets a bit more in this video.
  3. Income Statement: We also call this a profit and loss statement. An income statement is a summary of the company’s profits and losses during a period of time, usually a month. Income statements show all money earned during the month, as well as the operating expenses. Learn more about profit and loss statements in this video.
  4. Deduction: If you’ve been running a small business for any length of time, you’ve heard the hype about deductions. Basically, a deduction is any money spent to run the business, which in turn reduces your year-end taxable income. Deductions are great for lowering tax bills for small business owners.
  5. Asset: An asset is any item owned by the business that is expected to last several years. Assets normally refer to larger or more expensive items like cars, office furniture or computer equipment. If you are going to lease or rent property to tenants, it can include rental houses or improvements made to business property. General office supplies are not considered assets, but can be used as deductions.
  6. Liability: A business liability is an obligation that came about from a prior transaction done by the business. In accounting, a liability is assigned a dollar value and the business is responsible for repayment of that amount in the future.
  7. Revenue: Refers to all the money made by a company doing what a company does–whether they’re selling products or services, revenue is the total amount of money made. Sometimes you’ll see revenue referred to as “gross income.”
  8. Accounts Receivable: When you’ve sold products or services to a person or company that have not been paid, this is considered your accounts receivable. Your accounts receivable can be listed as assets on your balance sheet.
  9. Accounts Payable: This includes any bills you have yet to pay for your small business. The sum of all your accounts payables are listed as a current liability on your balance sheet.
  10. Tax Credit: this number is subtracted from the final amount of taxes you owe the IRS come tax season. If you have $1,000 worth of tax credits and you owe $8,000 in taxes, you’ll only pay $7,000.

Brush up on these quick need-to-know accounting terms and stay in the know about the basics of your small business bookkeeping and accounting.

Taking Stock Annually

Taking Stock Annually: Being Prepared for an Accident, Emergency, or Death

Tax season is not only a great time to get your finances in order, but it’s also an opportunity to update other important information about yourself in the event of an accident, emergency, or death. While of course you hope nothing of the sort happens to you, it is always a possibility. Being prepared for the worst can help your friends and loved ones cope if difficult times were to beset you.

Taking Stock Annually

Here are a few quick tips on taking stock annually and being prepared for the unexpected:

  • Review (or write) your will. Take the time to update your will if you’ve gained any new assets, if your executor or plans for guardianship for children or property have changed, or if you’d like to change your arrangements for money or property. If you haven’t written a will yet, it’s best to get that done as soon as possible.
  • Go over your estate planning and power of attorney. Setting up your estate to minimize costs and taxes helps you and your beneficiaries.  Talk to your accountant or attorney about this step.  Power of attorney can bring peace of mind knowing that someone you trust and who you have acquainted with your wishes will be handling your affairs in case of an impairment or death.  Complete the forms, either with your attorney or off the internet, and include them with your documents.  You may also want to give your POA a copy.
  • Make known any medical requests in the event of an accident or death. Give your specified DNR order, decide whether you’d like to be an organ donor, and make known any other medical requests you may have.
  • Update a file of usernames and passwords for all of your accounts. You may not want your social media accounts going on long after you die, let alone your subscription-based services. Leave login info for all online accounts and instructions on what you’d like done with them in the event of your death.
  • Include a balance sheet and income statement of your personal and business bank accounts. You’ll want your executor to know where these accounts are located and how to access them.
  • Create a contact information sheet that includes people you work with, friends, and other acquaintances that your close family may not know about but who should be contacted in the event of an emergency.
  • Store all of this information in a safe place. Some may feel comfortable with it in their homes, while others may choose to store it in a bank security box. Regardless of where it is stored, make sure it is safe, that someone you trust knows about it, and that it is accessible to the right person at the right time.
  • Update your family emergency plan. This should include how the family will communicate with each other in case of a disaster, where everyone will meet, along with a phone tree, updated contact information for everyone, plans as to who will check on whom, and the like. It’s also helpful to have a code word known amongst the family to let one another know there is trouble, without letting the bad guy know.
  • While you’re at it, go the extra mile for disaster planning. Refresh your 24 or 72-hour emergency kits in your home and car, and gather water storage or empty, clean, and refill existing water storage.

Prepared for an Accident

While this list may feel a bit overwhelming, it really doesn’t take very long to accomplish. Tackle it all at once, or take it one task at a time, but get it done. Having all of your important information updated and in once place will help you feel secure and ensure that you won’t leave a headache for anyone in the event of death or emergency.

Frequently Asked Questions

1. Why should I update my will during tax season?

Tax season is an excellent time to review and update your will because you’re already organizing your financial documents. If you’ve gained new assets, changed your executor, or want to adjust your guardianship or financial plans, updating your will ensures your wishes are accurately reflected and will save your loved ones from confusion later.

2. What is the benefit of reviewing estate planning and power of attorney annually?

Reviewing your estate planning and power of attorney ensures that your assets are managed efficiently, minimizing taxes and costs. Assigning a trusted person as your power of attorney gives peace of mind that someone familiar with your wishes will handle your affairs if you become incapacitated. Regular updates ensure that your plans remain in line with your current situation.

3. Why is it important to keep a record of usernames and passwords for all my accounts?

Having a record of your usernames and passwords allows your loved ones or executor to manage or close your online accounts in the event of your death. Without this information, managing digital assets, like social media and subscription services, can be time-consuming and challenging for your family.

4. How can I make my medical requests known in the event of an emergency or death?

To ensure your medical requests are honored, clearly document any specific wishes, such as a Do Not Resuscitate (DNR) order or organ donor status. Inform your family and healthcare provider about these decisions, so they are aware of your preferences in case of an accident or emergency.

5. Where should I store my important documents and emergency information?

Store all vital documents, including your will, estate plans, and emergency contact lists, in a secure location like a home safe or a bank security box. Ensure that someone you trust knows where they are and can access them in an emergency. Keeping these documents safe but accessible is essential for ensuring they are used when needed

Can I Pay My Family for Their Help with my Business?

Can I Pay My Family for Their Help with my Business?

So can you hire family? Absolutely.
In fact, hiring family members is pretty common amongst sole proprietors. Whether it causes strained relationships is entirely up to you, but here’s what you need to know in regards to taxes and paying family members. The Internal Revenue Services outlines the following regarding family help.

Employing Your Child

  • Wages of a child are subject to income tax withholding, Social Security, Medicare, and Federal Unemployment Tax Act (FUTA) tax if he or she works for:
    • A corporation, even if it is controlled by the child’s parent,
    • A partnership, even if the child’s parent is a partner, unless each partner is a parent of said child, or
    • An estate, even if it is the state of a deceased parent.
  • Wages are subject to income tax withholding, regardless of age.
  • Children under 18, are not subject to Social Security and Medicare taxes if the trade or business is a sole proprietorship or a partnership in which each partner is a parent of the child.
  • Children under 21, are not subject to FUTA tax.

Employing Your Spouse

  • Wages of a spouse are subject to income tax withholding as well as Social Security, Medicare and FUTA taxes if he or she works for:
    • A corporation, even if it is controlled by the individual’s spouse, or
    • A partnership, even if the individual’s spouse is a partner.
  • Payment to a spouse are subject to income tax withholding and Social Security and Medicare taxes, but NOT to FUTA tax.

Employing Your Parent

  • Payment for services of a parent employed by their child in a trade or business are subject to income tax withholding, Social Security and Medicare taxes.
  • Wages are not subject to FUTA tax, regardless of the type of services provided.
  • If your parent works for you, the wages you pay to them are subject to income tax withholding, Social Security and Medicare taxes. Social Security and Medicare taxes do not apply to wages paid to your parent for services not performed in your business, but they do apply to domestic services if both the following conditions are met:
    • Said parent cares for your child who lives with you and is under 18 or requires adult supervision for at least 4 continuous weeks in a calendar quarter due to a mental or physical condition.
    • You are widowed, divorced, or married to a person who, because of a physical or mental condition, cannot care for your child during that period.

Employing Other Family Members

So you’re not hiring your child, spouse, or parent. Can you still hire other family members, like aunts, uncles, cousins, or nieces or nephews? Yep. But there aren’t any special rules provided by the IRS for those family members. Their wages should be treated like any other employee’s.

If you have additional questions regarding hiring family members, feel free to drop us a line. We’d love to hear from you.

Interested in Learning More?

Schedule a free consultation with our team!

Top 3 Things to Consider Before Starting a Small Business (from a CPA’s Perspective)


So you’ve got a great business idea, a plan to make it work, and you’re ready to set yourself on the path of entrepreneurship. No matter how prepared for success you are, there may still be a few things you haven’t thought of. Our CPA, Ben, discussed the possible pitfalls of a new business venture and how to avoid them this morning on Periscope. Being a small business owner himself, he’s learned a thing or two about what it really takes to run a successful small business.

  1. The first question you need to ask: Is there a market for my product or service? As harsh as it sounds, if there aren’t people out there willing to buy what you’re trying to sell, your business simply won’t succeed. There has to be some sort of demand for what you’re doing. The best way to determine this is to do some research. Use the internet, ask around, put it out on social media–ask questions like, “is this marketable?” “Would you buy this?” “Is there someone doing something similar to what I’m doing who is having success with it?” “Is what I’m offering both useful and interesting?” The absolute best way to determine if there is a market for your product or service though is to think hard about what problem you’re solving for consumers. This doesn’t mean that you have to sell something essential for survival or that your business has to solve a tremendous problem, but what you’re offering has to make their life somehow better. You could be solving the problem of time management by selling trendy and artsy planners/organizers, or you could be helping them write their will by offering legal advice. Regardless, you have to find out if there are people out there willing to put forth money for what you are pitching to them.
  2. Support from family and friends. Even if you’re planning to run a one-man show, the people in your life have to buy in to what you’re doing so you can achieve greater success. Running a business demands a lot of time and resources from individuals, and can be hard on families and relationships. Getting your friends and family members both interested and supportive of what you’re doing can really give you the extra push to succeed, as well as help you along on days when the path of entrepreneurship feels lonely and bleak.
  3. Take your expectations of time and expense and multiply them by three. As much as we’d all like to earn a six-figure income in a two hour work day, it’s not a reality for most people, especially business owners just starting out. Plan on your new business to taking three times as much money and three times as much time as you’re planning right now and you’ll be a little closer to reality. If you originally planned for two years and $10,000 to get things up and running, plan on six years and $30,000. You may be pleasantly surprised if things come together cheaper and quicker than that, but multiplying those projections by three is probably a little closer to reality. Hopefully, in the end, your business will also be three times more profitable than your original plan as well!
 

Take your expectations of time and expense

Follow along on Periscope (@vyde) on Wednesdays at 10 am MST for more business discussions, tips, and financial advice from Vyde’s CEO/CPA, Ben Sutton.

Frequently Asked Questions: 

How can I determine if there’s a market for my business idea?
Research is key. Use the internet, social media, and ask questions to gauge demand. Consider what problem your product or service solves for consumers.
Why is support from family and friends important for a new business owner?
Running a business can be demanding and isolating. Having the backing of loved ones provides encouragement and motivation during challenging times.
How should I adjust my expectations regarding time and expense for starting a business?
Expect to invest three times the initial time and money you anticipate. While it may seem daunting, this approach prepares you for the reality of business ownership.
What role does consumer demand play in the success of a business?
Consumer demand is crucial. Your product or service must address a need or desire, making customers’ lives better or easier. Understanding this ensures market viability.
Where can I find more business insights and advice?
Tune in to Periscope (@vyde) on Wednesdays at 10 am MST for discussions, tips, and financial advice from Vyde’s CEO/CPA, Ben Sutton.

Financially Fit This Tax Season

5 Tips on Getting Financially Fit This Tax Season

Tax season is in full swing and that April 18th deadline is coming quickly. If you missed the boat on setting financial new years resolutions (or maybe you fell off the boat and need to get back on), here are a few ways to revamp and get yourself and your business financially fit during tax season:

Tax season is in full swing

  1. Close out the 2015 year. A lot of taxpayers don’t actually know where they stand for the previous year until they get their taxes done. Even though you’ve still got a month left to file, it’s best to get your taxes done as soon as possible so you know your income and expenses for the previous year. Gather up your receipts and invoices and make an appointment with your accountant so you can officially close the books on 2015.
  2.  Be smart with your refund. Make a plan for what you’ll do with your refund before it hits your account. It’s too easy to just spend it away if you don’t have a spending/savings plan beforehand. Write down your goal so you’ll stick to it. Here are a few ways to invest your refund back into your business. On the other hand, if you owe taxes to the IRS, get them paid ASAP. You don’t want a looming tax bill all year long, although you can set up a payment plan with the IRS if you need to. Pay as much as you can as soon as you can, and plan to set aside money along the way next year so you’re not hit with a big bill next tax season.
  3. Pay yourself first. As a business owner, it’s easy to take care of everyone else and every other expense and then not have a paycheck at the end of the month. Rather than just keeping what’s left over as your paycheck, set yourself a salary and try to follow it as closely as possible. This also makes tax season a little less of a headache.
  4. Create a plan for the remainder of the year. If you didn’t create a plan in January, now is the time! You’ll know where you stand financially after you get your taxes done, so you can budget accordingly for the rest of the year. You may decide you only want to create your budget a month at a time, which is fine, but be sure to keep the big picture in mind as well. Here are a few tips on creating a simple budget for your small business.
  5. Find ways to save money. Again, now that you know where you stand this tax season, dig a little deeper into your budget and find ways to save money. Cut out unnecessary costs and get your spending on track. The best way to do this is to keep meticulous track of all expenses for a month or two, and adjust accordingly.

Cut out unnecessary costs

How are you getting financially fit this tax season? We’d love to hear in the comment below!

FAQs:

1. Why is it important to close out the 2015 year for taxes?
Closing out the previous year helps you understand your financial standing and prepare accurate tax filings based on income and expenses.
2. What should I do with my tax refund?
Have a plan in place before receiving your refund to avoid impulsive spending. Consider reinvesting it into your business or paying off debts to enhance financial stability.
3. What if I owe taxes to the IRS?
If you owe taxes, prioritize payment to avoid accumulating interest and penalties. Setting up a payment plan with the IRS can help manage the burden.
4. Why is paying myself first important as a business owner?
Prioritizing your salary ensures financial stability and helps streamline tax obligations, making tax season less stressful.
5. How can I create a budget for the remainder of the year?
After assessing your financial status post-tax season, develop a comprehensive budget considering both short-term and long-term goals. Regularly monitor and adjust as needed to stay on track.

The Business of Blogging Part 8: Invest in Your Blogging Business

You’ve probably heard the old adage, “You have to spend money to make money.” This adage is just as true for the blogging business as any other business. If you want to turn your blogging hobby into a legitimate business, you have to invest a little bit of money to make it happen. However, that doesn’t mean you have to throw your money at every opportunity that comes along.

Here are a few smart ways to invest in your blogging business without breaking the bank:

  • Domain name. In order for your blog to be recognized as professional, you’ll have to ditch the “.blogspot” or “.wordpress” in your domain name. Sites like BlueHost offer domain hosting for as little as $3.95 a month. If you don’t want to pay a monthly fee, buy multiple years worth of hosting up front. Most hosting sites will refund you if you cancel your subscription early.
  • A professional look. Whether you choose to hire a graphic designer, web designer, or simply do it yourself, you’ll need to spend a little money to get your site looking beautiful and working properly. A logo helps brand your business and helps your following recognize your blog. This investment ranges anywhere from $50 to thousands, depending on your budget.
  • A nice camera. You don’t have to spend thousands of dollars to get a crisp photo for your blog posts. However, a nice camera that can produce high-quality photos is a smart investment for your blogging business. You can deduct your camera purchase on your taxes all in one year, or if you spent a bit more on it, you can depreciate it over time.
  • Conferences and trainings. If you read part one of our Business of Blogging series, you know not to expect to make millions of dollars overnight. There’s a huge learning curve to blogging, and you need to know what you’re doing in order to make money. Blog conferences are a great way to learn the basics and are a smart investment for your blog business.
  • Professional headshots. Other than your logo, your headshot is the representation of your blog. Most bloggers use their headshots for their social media profiles, so it’s important that you’re happy with it. You can take your own, but if you don’t know your way around a camera, it’s not a bad investment to hire a professional.
  • Business cards. Not everyone you meet who is a potential supporter of your blog will actually be through your blog. Having business cards handy will is a great way to advertise your blog and keep you at the forefront of potential sponsors’ minds. Business cards are also great to hand out to other bloggers, especially at conferences. They’re a relatively inexpensive business investment, but critical to success.
  • Editing software. Free programs such as PicMonkey are great, but many bloggers choose to invest in professional editing/designing software such as Photoshop or Illustrator. Adobe subscriptions range from $20 a` month to $50 a month, or you could even purchase one of the older CS versions on a disc for your blog business.
  • A professional accountant. Not just because you’re here reading an accounting blog! When you start making money on your blog, tracking expenses and filing taxes properly can become a huge hassle. This is especially true if you have multiple streams of income for your blog. Consider investing in the services of an accountant to help make your blog as profitable as possible.

While this is not an all-inclusive list of smart investments for your blogging business, it’s a great start for the novice blogger. The best part about all of the above investments is that they are tax-deductible and will reduce your taxable income at the end of the year.

 

Love this post in our Business of Blogging Series? You might also enjoy:

Separating the Blogging Myths from the Blogging Truths

Deciding on a Business Entity for your Blog

Obtaining a Tax ID Number and Proper Licenses to Run Your Blog Business

Start Making Money on Your Blog

Creating and Maintaining an Organized Bookkeeping System for Your Blog

Tracking Blog Expenses the Right Way

How to Create a Budget for Your Blog

Paying Estimated Quarterly Taxes for Your Blog Business

Hiring an Expert to Manage Your Blog Finances

If you want to turn your blogging hobby into a thriving blogging business, you have to invest in the right tools. Then, we can help you save on your taxes.
Load More

Vyde is a licensed accounting firm (CPA) based in Provo, Utah, and members of the AICPA. We provide professional accounting services to businesses and individuals, with a focus on small business bookkeeping and taxes.

X-twitter Facebook Instagram Youtube Linkedin

Our Services

About Vyde