How does a business owner who is financially confident look? They automate payments, save money and take full advantage of all write-offs. Your taxes, solicitor and accountant? Covered. What about their will and insurance policy? Up to date. Their finances are in order, so they can sleep soundly at night.
Does it sound like a fantasy? Here are some steps that you can take this year to increase your financial confidence.
- Schedule your installments
Online banking is a great way to make all of your payments in January. Installment payments that are missed can result in interest charges by the government.
- Dividends: Your installment schedule can be found on your personal income tax returns.
- Payroll: Make sure that monthly payroll payments are scheduled.
- If you owe more than £3,000 in GST or corporation taxes, you will likely be paying quarterly (or monthly). Details can be found in your notice of assessment.
- Be audit ready and maximise write-offs
Confident business owners are prepared for audits and know all their expenses. Keep a paper trail of all expenses incurred for your business. You can keep them organised digitally or in a physical format.
- Automatic monthly investing
Get rich slowly. Start investing a little bit of each cheque.
- Rainy day savings automated
When life throws you curveballs, a financial cushion will help to reduce stress. Free savings accounts that allow you to set-up automatic transfers.
Pro tip: Set up separate accounts to save for specific goals, such as a new guitar or holiday. Automate small transfers every payday — you will be surprised at how quickly they add up.
- Regularly save on taxes
Late payments are not a necessity for any business owner. Together with your accountant, determine the percentage of income you should set aside to pay taxes. Regularly saving will help you be prepared for tax time without having to scramble. Are you unsure where to begin? Help is always available. For Accountants Bristol, visit chippendaleandclark.com/accountants-near-me/bristol
- Pay by credit card automatically
You are wasting money by paying interest on your credit card balance. Ask your banker about automatic payments on your credit card balance. You can save up to 20% by paying your credit card bill before interest starts to accumulate.
Your banker can set up your credit card to automatically pay your balance before the interest starts to accrue. Give yourself peace of mind by avoiding the 20%.
