5 Money Management Tips for Entrepreneurs

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StrategyDriven Managing Your Finances Article

As an entrepreneur, you know how important money management is. Both inside and outside of the workplace, it can be the difference between struggling to make ends meet and paving your way for financial success. What’s more, it can be the difference between making and losing a profit. For this reason, money management simply must be a skill that you work on and try to become well versed with regards to.

If you feel that your career as an entrepreneur is being held back by a lack of knowledge on your part in the art of money management, then make sure to check out the five pieces of advice below.

1. Establish personal financial goals and steps to reach them

In order to turn over a profit in your career and grow your entrepreneurial portfolio as a result, you must, first, be able to manage your money on a personal level. Well, if you can’t look after your own money, how are going to be able to look after a business’s or even another person’s?

To learn how to look after your own money, you should establish some personal financial goals. It means setting targets and being proactive in the steps that you take to reach them. Whether this means aiming to have a specific amount of money saved by a particular time, or whether this means spending a certain amount in a week, you should set your targets and put plans into place so that you can reach and hit them. By becoming well versed in the art of goal setting and step taking as a person, you’ll succeed as an entrepreneur because these are skills that are exchangeable.

Something else that you should do on a personal level is to know what your credit score is. You’re never going to get anywhere as an entrepreneur if you don’t know what your rating is. What’s more, you could actually be held back from making future investments based on past discrepancies. It means that knowing where you stand with regards to credit is essential.

2. Get educated

If you want to become a genuinely great manager of money, then you need to educate yourself financially as often and as fervently as you can. It doesn’t necessarily mean taking a course in finance or accounting; this just means throwing yourself into tasks in which you have to be on the ball in a financial sense to stand any chance of success.

A good first port of call is to throw yourself into the deep end with investing and stock markets. By learning all about what it takes to study and manipulate ever-changing financial markets, you will soon understand how to stay afloat financially no matter what financial fiasco comes your way. By educating yourself in regards to bull and bear markets and what kinds of investments can and should be made within them, especially, you will set yourself up for a lifetime of financial strength and longevity. In this instance, you should check out Dr Kent Moors stock picks, specifically the information that details oil investment, as this will help you to have a better grasp on what, how and when certain investments should be made.

3. Learn to crunch numbers

By learning how to crunch numbers, you will be able to make sense of every financial figure that comes your way, which means that you’ll never be left dumbfounded by anything that you come across, and you’ll find yourself missing out on profit far less. To learn how to crunch numbers and reach financial figures easily, spend as much time as you can with your company’s accountants. Also, you could try playing games that rely heavily on one’s ability to read and understand financial patterns, one such game being poker.

Learning how to crunch numbers will also benefit you in your quest to become a great marketer. This is because number crunching will teach you what it takes to translate the impact of trends and then turn them into tangible results for yourself.

4. Become well versed in the art of organization

You’re never going to become an entrepreneur that has a reputation for being great with their money if you aren’t good at organization. It doesn’t just means learning how to organize your money, either. You should treat organization as if it is a way of life. You should know where everything is at all times, and you should know where you have to be at all times too.

In regards to chronicling your financial information specifically, start by organizing everything into categories. Put information of the utmost importance and outgoing payments that are deemed urgent at the forefront of your financial plans, and sums that can afford to be left unattended for a while on the back burner.

5. Find yourself a mentor

If you aren’t a professional accountant or financial advisor, you will struggle from time to time when it comes to money management. Sometimes you’ll feel like you can’t keep up with all of your monthly outgoings and incomings, and sometimes you’ll spend far more than you can afford to. To stop yourself from inflicting irreparable damage on yours or your business’s financial status, you should find yourself a mentor who can guide you. It could mean working alongside an accountant at your firm, it could mean hiring a financial consultant to help you from time to time, or it could simply mean talking to an older friend or relative of yours that has some experience in equity and asset holding.

If you want to be a successful entrepreneur, then learning how to manage money is an absolute must. To do this, you should ensure that your personal finance is as strong as it can be, you should educate yourself with regards to investment, you should learn how to number crunch, you should organize yourself in a business sense and as a person, and you should align yourself with a mentor. By doing all of this, you’ll be well on your way towards being able to handle even the largest sums of money. Lastly, don’t forget to check out https://www.moneyexpert.com/za/ for all the best deals for helpful financial purchases from loans to insurance for your business.

Dealing with Payroll for Small Business Owners

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StrategyDriven Managing Your Finances Article | Dealing with Payroll for Small Business Owners

Single touch payroll is one of those essential tasks that small businesses must undertake, but it can be a confusing and time-consuming process. The basic principle is straightforward enough – calculate the gross monthly earnings of your employees, then subtract deductions to arrive at a net figure. Inevitably it isn’t as simple as it sounds, and you need to be aware of every detail and produce 100% accurate net figures. If you don’t yet have small business accounting software, here is how you can understand it.

Deductions

Statutory payroll law states that the employer must retain this deduction and transfer the money to the relevant tax office. Statutory deductions include federal income tax, social security tax, Medicare tax (with an additional percentage for high earners) and state income tax. There will also be local taxes that come under the statutory umbrella, such as city and county taxes, plus school district, state disability and unemployment insurance.

Voluntary deductions are agreed with the employee and cover employment benefits such as health insurance, life insurance, retirement plans and stock purchase plans. It also includes any job-related expenses, for example, uniform, meals and union subscriptions.

Employer’s role in tax collection

It is essential that every employer keeps records of their payroll accounting and adheres to the law regarding tax deductions. It is the duty of the employer to deduct the correct tax amount from the employees’ wages and ensure that it is transferred to the right tax agency. To maintain comprehensive accounts of all monies dealt with, the employer must produce reconciliation reports, file payroll tax returns and include all payroll expenses in the company accounts and financial reports.

Taxes paid by the employer

In addition to the taxes an employee pays, the company must contribute to payroll taxes. These are payable in addition to an employee’s earnings and include social security, Medicare, federal unemployment taxes (FUTA) and state unemployment taxes (SUTA).

The importance of good record-keeping

Make sure your payroll accounting is kept meticulously recorded and up to date. Taxes need to be paid on time, and the mandatory forms filed when due. These forms include the annual federal unemployment tax return, the employer’s quarterly payroll tax return, the annual return of withheld federal income tax, and the wage and tax statements form. As well as federal requirements, employers also have to file reports with state and local agencies.

How do you run your payroll accounting

Large businesses can employ payroll experts or even entire teams to take care of all aspects of payroll. Small businesses often don’t have trained personnel, and with payroll being a crucial factor in running a legitimate business, the responsibility needs to be taken on by someone with the knowledge and abilities necessary to ensure that standards are being met. Small business owners often need to learn new skills, and this can often be facilitated by researching the topic on the Internet. For many needs, as long as you are careful to check that your sources of information are authoritative and reliable, then the knowledge you wish to obtain can be found quite easily. However, the skills required to run a well-managed payroll operation will not be so readily acquired using the same method. The intricacies of payroll and possible complications require professional training if you want to be confident you won’t end up in a payroll tangle further down the road.

Learning to run the payroll

The American Payroll Association runs courses on payroll, and offers virtual study options as well as having training suites in most major cities. The study can lead to Certified Payroll Professional (CPP) and Fundamental Payroll Certification (FPC) qualifications. It could be a good option if you wish to master the art of payroll for yourself or have a member of staff that is suitable for the role.

A less formal option might be to enlist the help of friends, family or anyone else who understands payroll and could help you with keeping records and doing tax returns to the required standard. It could be a good option if you only have one or two members of staff and limited resources. It cannot be stressed enough, however, that whoever you ask for help must be an expert, not just a buddy from the office next door who says he knows all about payroll! Make sure your adviser is qualified and can prove their expertise. Payroll is far too important to get right to trust it to just anyone.

Not learning to run the payroll

You may not want to spend your precious work time doing payroll, let alone learning about how to do it properly. If you don’t have the time or inclination to do it yourself, one option is to outsource. Outsourcing has become a popular choice for many discrete business functions and is a good way of getting aspects of your business taken care of professionally when you don’t have the skills or availability to do it yourself. If your business needs you to bring in sales leads and meet with clients in order to generate business, then that is what you need to devote yourself to. The business is likely to make more profits with you acting in your strongest role rather than spending time doing payroll, which could be accomplished more cost-effectively with outsourcing. Choose your outsourcing company carefully to ensure you get the highest standards of service. This option sounds expensive, but it needn’t be. It is perfectly possible to find a Cheap Payroll Service that will do a good job for you, so don’t assume it will be too costly.

Payroll matters

The thought of tackling payroll may make you groan, or induce a headache as you contemplate the lists of tax percentages, welfare contributions and complicated calculations. The key message here is that payroll is vitally important, and it won’t go away. However much you might dislike it, it has to be done. Spend some time assessing which solution is most suitable for you, your staff and your company. Decide the method you want to use to tackle your payroll, put a plan into action, and then quit worrying about it.

Saving Cash in 2020: Your Quick Guide

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StrategyDriven Managing Your Finances Article |Saving Cash|Saving Cash in 2020: Your Quick GuideThis year is looking like a difficult one for individuals and families across the world. With millions out of work – and still more on a reduced salary, or on reduced hours – it can become difficult to make ends meet. That’s why, in this article, we’re going to take a look at the ways in which you can save you, and your family, some cash – ensuring that you’re not eating into your savings during this difficult financial period. With the right preparation, you’ll be able to reduce many of your monthly costs – as you’ll see below.

Your Subscriptions

When you check through your bank statement each month, you may come to find a few recurring payments that you feel are above and beyond what you can cover at the moment. These might include exorbitant phone bills, fees for membership organizations, or subscriptions to software or services. Look up how to cancel Adobe subscriptions, and how to shut-down direct debits you’re paying in order to reduce your total expenditure every month.

Food and Drink

Next up is the cash you spend on food and drink for your family. While it’s always nice to splash out on a takeaway meal, or expensive food from restaurants and cafes, it can sometimes be a little irresponsible to do so when you’re not earning a great deal of cash. Cutting down on what you spend on food and drink – and this includes alcohol, which can be expensive – will help you save for the future in a responsible fashion.

Bills

Many families across the US pay their bills in relation to how much electricity and heating, or air conditioning, they use. In these summer months, there’s less reason than usual to use your energy up in your home: it’s warm outside without being stifling, and it’s light for most of the waking day. If you can cut down on your energy usage in your home, your bills will reduce dramatically as a result.

Vehicle

How much are you driving at the moment? Are you able to cut down the amount that you drive, replacing some journeys with public transport, walking, or cycling? The amount of cash you spend on gas and vehicle repairs each year can really add up, leaving you with costs of over $100 each month. If you can, attempt to leave behind some of your driving so that you’re saving this cash to put towards more valuable investments.

Luxuries

Finally, if you’re beginning to worry about your cash flow in the future, it’s best to begin thinking shrewdly about what you spend your cash on, and where you decide to spend your expendable income. Everyone is different, with unique luxuries and a unique spending pattern. It’s up to you to see what’s essential and what’s a luxury, and to cut out the latter in your monthly spending. You can return to that luxury spending when you’ve found financial stability once again.

Use the tips outlined in this short article to cut out a good deal of your monthly spending, helping you to achieve financial stability for yourself or for your family.

A Helping Hand: 3 Key Things to Remember About the Government’s Coronavirus Aid Package

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StrategyDriven Managing Your Finances Article |Coronavirus Aid Package|A Helping Hand: 3 Key Things to Remember About the Government’s Coronavirus Aid PackageThe Coronavirus aid package, known formally as the CARES act, was passed by the American government in an effort to help alleviate the economic impacts of the COVID-19 pandemic on small business owners and families. With all of the economic uncertainty caused by the pandemic, families and individuals should seriously consider taking advantage of all available resources to avoid long-term personal and professional consequences. Get started by reading on to find out about three of the most important things about the coronavirus aid package.

Small Businesses Can Get Low-Interest Loans

The CARES act makes provisions for the Small Business Administration (SBA) to provide cash-flow assistance to businesses with fewer than 500 employees in the form of low-interest loans. These loans are provided by banks, but they’re guaranteed by the SBA. To get a loan, businesses must meet eligibility criteria, find an approved SBA 7(a) lender, and apply for the program before funding runs out. The best way to get started is to find information online at bswllc.com about CARES act loan consulting for small business owners.

The loans provided through the CARES act Paycheck Protection Program are specifically designed to help small businesses weather the storm of COVID-19. They can be used to cover things like payroll costs, paid sick leave, health insurance premiums, mortgage payments, and more. Eligible borrowers include not just small businesses, but also 501(c)(3) tax-exempt non-profits, registered veterans organizations, sole proprietors, tribal businesses, independent contractors, and the self-employed.

Coronavirus Relief Loans Are Partially Forgivable

When the loans are used to pay employee wages after businesses are partially or fully suspended or gross income declines by more than 50% in comparison to last year, the loans are partially forgivable. Eligible businesses with less than 100 full-time employees can get partial loan forgiveness regardless of whether they have been subject to shut-down orders.

If borrowers follow all the regulations laid out in the CARES act for how the loans can be used, they will be eligible for forgiveness of the money spent not just on payroll costs, but also rent, utilities, interest payments, and mortgages taken out before February 15, 2020. Since the SBA is guaranteeing the loans through private lenders, it is up to the discretion of the lender to determine forgiveness. The timeframe for forgiveness by lenders is currently 60 days from the borrower’s request.

Borrowers must provide documentation of how the money was spent to prove that the loan was used for approved purposes. This documentation must verify how many full-time equivalent employees are on the company’s payroll, how much they were paid, and how much the business spent on mortgage or lease obligations, utility payments, or other debt obligations. Lenders can request additional documentation if they deem it necessary to verify that the borrower’s expenses qualify for loan forgiveness.

Businesses that lay off employees or reduce their wages during the covered period of eight weeks from the time of taking out the loan will have the amount of forgiveness reduced. Employers who reduced payroll or employee headcounts between February 15 and April 26 can reinstate their former employee payrolls by June 30 to restore their ability to request loan forgiveness.

The CARES act also makes provisions for a refundable payroll tax credit. Employers who keep their workers on the payroll even if they can’t work full-time, or at all, can expect the program to cover 50% of their wages during the COVID-19 crisis. The credit will cover wages paid from March 13 to December 31 of this year up to $10,000 per eligible employee.

Student Loan Borrowers Get a Reprieve

Business owners aren’t the only ones who have benefited from the CARES act. In addition to the paycheck protection program, it also stipulates that student loan borrowers will not have to make payments on the federal loans until September 30. During this relief period, student loan payments will be fully deferred, and no interest will be accrued on the accounts.

There’s even more good news for borrowers whose loans are in rehabilitation. For every month that the loans are suspended due to the COVID-19 pandemic, the suspended payment will count as if the borrower had made the payment. This avoids disruptions to former students’ loan forgiveness obligations and reduces the burden on borrowers who are rehabilitating their federal student loans.

Borrowers with eligible student loans don’t have to do anything to take advantage of this program. They can simply stop paying their loans without incurring any fees or additional interest. Those who choose to continue paying their loans will also benefit since 100% of the payments will go to paying down their principal balances during this time.

Borrowers who have defaulted on their student loans will not have their wages garnished during the relief period. If they have experienced wage garnishments since March 13, borrowers can contact their employers to request that any funds sent to the Department of Education during this time be returned. Borrowers whose 2019 tax refunds or Social Security payments were withheld to pay off defaulted student loans can also have their refunds returned provided the process for withholding it was completed after March 13.

The CARES act also makes a provision for employers who pay down student loans as part of their employee benefits packages. These employers can now contribute up to $5,250 through the rest of 2020 tax-free, which benefits both employers and employees.

The Bottom Line

It can be difficult for business owners and consumers to sort out all the provisions of the CARES act by themselves. The best thing for those with questions about eligibility or the application process to do is to contact an accountant who can help them better understand what assistance is available during these trying times. The pandemic has changed everything about life in America and across the world, but it shouldn’t mean that business owners and families wind up suffering needlessly. Don’t be afraid to take advantage of the CARES act provisions for protecting America’s workers, but make sure to consult an expert before taking out an SBA-guaranteed loan to ensure eligibility and clarify requirements.

Effective Ways to Cut Your Business Expenses

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StrategyDriven Managing Your Finances Article |Cut Your Business Expenses|Effective Ways to Cut Your Business ExpensesAll businesses cost money to run and involve necessary expenses such as employee salaries, office overheads, and supply costs. While some expenses are unavoidable, there are various ways to cut your business costs and save more each month. Becoming more financially aware and identifying ways to lower costs will boost your bottom line and provide you with more cash to invest in core areas of your company. With this in mind, here are some effective ways to cut your business expenses:

Reduce staff turnover

Recruitment is a significant expense for businesses, and many companies invest heavily in their recruitment strategies to attract the best candidates. Recruitment costs increase significantly when you have a high staff turnover rate, as you will have to invest resources in advertising job openings, vetting applicants, and training new employees. High staff turnover will also cause disruption in your business, which is likely to harm productivity and overall revenue potential. The current job market favors candidates, and research shows that there are currently more job openings than hires. With this in mind, it is more important than ever for employers to keep their teams happy and take steps to retain their skilled employees. You can minimize staff turnover by offering competitive pay and benefits, praising your staff for their work, and offering regular career advancement opportunities.

Lower your office costs

Your office overheads are likely to be your biggest business expense. Reducing your office costs can be a reliable way to cut your business expenses and boost your bottom line. Luckily, there are several thrifty ways to lower office costs. Here are a few ideas:

  • Move your office to a more affordable area:commercial properties tend to be cheaper when they are located on the outskirts of city centers.
  • Relocate to a smaller office space that offers a lower monthly rent.
  • Reduce the number of employees in the workplace by offering flexible and remote working. This should cut your office overheads and can also be an effective strategy to boost office morale and employee engagement.
  • Encourage green habits in the office, i.e., switch lights off during the day and have all equipment on the more eco-friendly setting. Switching to more sustainable workplace practices will reduce your company’s carbon footprint and cut your monthly utility bills.
  • Invest in a utility management solutions pay bill service to help you stay on top of your bills, reduce expenses, and save time.

Negotiate cheaper supply costs

The majority of businesses make wholesale supply purchases. Negotiating lower deals on supplies can make a dramatic difference to your monthly expenses, especially if you make wholesale purchases on a frequent basis. Make sure you shop around to find the best-value wholesale distributors. If you want to target proven fast-moving products, consider selling wholesale cups & mugs. You should always speak with your current supplier before switching, as they may be prepared to match the lower rate. This will allow you to avoid any unnecessary hassle and reduce the risks involved with switching suppliers. You may also be able to instantly reduce your business expenses by finding better energy rates. Switching to a new business energy provider could save you up to 30% and takes just 5 minutes.