4 Questions to Ask To Assess Your Company’s Financial Health
If your business has been in operation for a few years, there may be some aspects of your finances you haven’t considered lately. With various tax deadlines approaching, now is a great time to assess financial health and make sure your company is getting where you want it to go. While you’re busy with your day to day operations, it's important to take the occasional step back and assess your company’s financial situation. If you think it's time for your business’ annual checkup, here are four questions to ask to assess your goals and make sure you’re on track.
Are you missing out on any deductions, refunds, or rebates?
Most businesses are eligible for a number of deductions, but not everyone knows exactly which they are and aren't eligible for. Deductions, refunds and rebates can be largely beneficial in the long run, so being aware of where you can save money or get money back form the government is worth it. From transportation expenses, to salaries and wages, to contractors, and depreciation, there are many common tax deductions small businesses are eligible for that are often overlooked. A good step in assessing your business's financial health is taking these ways to save money into account and checking your eligibility.
Have you evaluated your employee benefits recently?
Health, dental, and other employee benefits are another place to check in to assess your company’s financial health. To run your business well, you need cost effective and reliable benefits package. In an evermore competitive job market, companies are competing on the benefits playing field to get the best talent. Netflix, for example, offers unlimited vacation time and a year of maternity and paternity leave to attract top notch tech professionals in a competitive industry. While that type of benefits package probably isn’t feasible for your company, a quick assessment is a good idea. Evaluating your employee benefits program to see its financial impact on your company and how it pertains to your employee health is a beneficial assessment that can serve you well in the long run.
Are your current finances in line with your company’s financial goals?
When assessing your company’s finances, it's important to keep your long and short term goals in mind. Are you hoping to have a certain net income per month by the end of the year? Is allowing for team training and continuing education something you want to add to your budget? Assessing your cash flow for both immediate and future needs can put your goals into perspective and help you evaluate where you are in your process. Setting and sticking to financial goals for your business can be difficult, so it's important to take them into account regularly.
Are you balancing the books at home and at work?
Both your company and your family have some bookkeeping to do at this time of year. Between personal and business tax responsibilities, it can be difficult to keep everything in order. With personal taxes due in April, be sure not to fall behind on those tax deadlines as well. From making sure you have your personal tax documentation in order to having everything aligned if you're self employed, it's important to take the time to both check in on your business and personal financial health to stay on track.
Whether you’re running the startup you’ve watched grow into a successful business, have moved into leadership in your family company, or have simply been too focused on daily operations to think about the numbers, financial health can sometimes slip through the cracks. In the long run, however, it's important to regularly assess your business’ health to insure maximum profits and minimal expenses. If you don’t want to spend times balancing the budget and are looking to outsource your business's bookkeeping, taxes, or CPA services, contact Honest Buck today!
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