Securing Financing for Your Business

If you’re planning on starting a new business, you should know that opening up your own business, no matter how small-scale, is never cheap. You will need startup costs to cover things like renting a business space or furnishing your home office, buying necessary supplies, advertising, and more. While some people may be able to front these costs out of their own budgets or savings, this isn’t a feasible option for the vast majority of people. Plus, just because you can afford to invest your own money in your business doesn’t mean you should. If you’re feeling torn about what to do, sit down with your Naperville accountant to go over your finances and discuss your options.

If you take the path of most small business owners and decide that you need to take out a loan to get your business off the ground, know that your Naperville accountant can help you with this process as well. Good accountants tend to be “in the know” about lenders in the area and about which lenders offer the best and most reasonable loan terms. Furthermore, accountants can also look over loan agreements and can let you know whether you’re getting a good deal and whether there are any hidden “surprises” lurking in that loan contract that you might not be aware of.

After financing is complete and/or your business is off the ground and running, you can still turn to your accountant for help and advice regarding all of your important financial decisions.

Saving Money at Tax Time

No one likes to be hit with a big bill when tax time rolls around. If this has happened to you recently, changes are that you’re either not working with a Naperville tax advisor or you’re not working with the right one. While many people cannot avoid paying back something come tax time, paying very large sums of money year after year could indicate that you (or your accountant) aren’t doing something right. If you’ve been unhappy with tax amounts in the past, consider these tips for saving money and making tax payments more manageable.

You may, for example, wish to ask your Naperville tax advisor about making quarterly tax payments rather than just making payments all at once. You may still end up paying the same amount in taxes, but it’s a lot easier to pay large tax amounts in three installments than it is to pay everything in one go. Plus, if you let your accountant handle all the tax forms and paperwork, quarterly filing doesn’t have to be a big hassle for you.

It’s also not a bad idea to consider opening up a retirement account. There are several different types of accounts available, which allows you to stay in control, and you’ll also be able to cut down on your taxable income. Not only will you be saving money on your taxes, but you’ll also be saving money for the future, so this is truly a win-win option no matter how you look at it.

Choosing Accounting Software

As a business owner, you probably already know how important it is to work with a good Naperville Quickbooks firm. Quickbooks is a wonderful program for keeping track of basic information related to your company’s finances and can come in handy for a wide variety of business tasks and responsibilities. You should not, however, rely on Quickbooks alone to manage your organization’s finances. Quickbooks is all the more effective when you use it in combination with accounting software that has additional features and capabilities. There are many different software products out there, and only you can determine which one is right for you. Fortunately, though, it’s usually fairly easy to spot good software.

Excellent accounting software, for example, tends to have lots of different programs for you to use. These programs are designed to help you handle just about any business related task you can think of. So, for example, your software system might have a payables and receivables program that allows you to track this information and/or a payroll function to make managing employees (and their paychecks!) a whole lot easier. While some of these features are available through your Naperville Quickbooks software, many accounting software programs are designed to work in conjunction with and to reinforce Quickbooks.

The quickest and easiest way to judge a software program is to judge the seller or marketer of that program. Quality organizations create and distribute quality products, so choose to work only with the best and most established software vendors in the industry. Obviously, finding those vendors will take some research on your part, but your efforts will pay off in the end!

Don’t Overpay at Tax Time

There are two types of people in this world: people who dread Naperville tax preparation time and those who love it. The ones who dread it are those who often have to pay large sums of money to the government. The ones who love it are those who get back nicely sized refund checks at the end of the year. If you fall into the first group, there’s a chance that you might be paying more than you have to, or at least that you’re paying more than you have to all at once. While there’s no guarantee that you’ll be one of the lucky few who gets a refund, there are things you can do to reduce the amount owed when tax time rolls around.

One very simple strategy is simply to increase your W4 withholdings. Doing so is relatively easy and straightforward, but if you have questions, any Naperville tax preparation professional can explain the process to you. In most cases, increasing withholding amounts decreases what’s owed at tax time.

Doing a few good deeds can also reduce your taxes. Plus, it will make you feel great about yourself, so it’s a win-win situation all around! Whether you wish to donate money to a non-profit organization, such as your church or a charity you believe in, or want to give away unused goods to a deserving cause or organization, your kind actions will be rewarded with a nice little tax write-off at the end of the year.

Building Up Your Client Base

As the owner of a small business, you undoubtedly have a lot of responsibilities to handle and pressing demands on your time. No matter how much you have going on, however, it’s important that you never stop looking for new clients and building up your client base. Many small business professionals make the mistake of stopping the “client hunt” when business is good. Those times when business is booming, however, are the best times for finding new clients. You won’t be under as much pressure to secure clients and earn money so the process will be a lot less stressful; plus, prospective new clients will see that you’re running a thriving, top-notch business and will be eager to be a part of it.

It’s a lot easier to devote time to finding clients and building your business when you’re not worried about finances or tax issues, so let your Naperville CPA take the reins in that area. Then, devote your time to finding great new clients. Become a people person, even if doing so is not within your comfort zone. Use every viable opportunity as a chance to network. If you find yourself at a party or social event with people who could become clients, for example, bring up your business! Likewise, consider attending local business conventions, joining the Chamber of Commerce, and getting involved in community activities that will make you better known in the area.

For more advice on helping your small business thrive, talk with your Naperville CPA. Most CPAs have worked with countless small business owners and, as such, will know a few good tips and tricks.