With tax time approaching stress levels are high and the headache worsens with each new receipt placed on your desk.
So perhaps it’s time to apply a little Marie Kondo inspiration to those business accounts?
Tax time is not all bad news; there can actually be some positives to gain.
For one, it forces you to review the health of your business accounts, placing your financial behaviours under the microscope.
So what better opportunity to make changes now to benefit the future you?
Spring Clean Your Spending
Did you really need that latest gadget, or that company branded paraphernalia?
Did those items really add value to your business last year?
Unnecessary spending is one of the biggest signs of bad financial planning and can be a hard habit to kick – even with the best budgeting in mind.
A recent study found that out of an estimated US$593 billion spent yearly on digital technologies, up to 66 percent of that was spent on efforts that delivered inadequate ROI.
And an estimated 60 percent of businesses waste money on promotional products.
Many businesses also make the mistake of spending more than is needed on a fancy office – how much does that zip code matter to the bottom line? Could you realistically move your operations into a smaller place?
Having a hard look at staff versus workload can also help improve your spending. Some small businesses pay for full-time tech support, who then wait for something to go wrong. There are many on-demand support services available that could potentially suit that role, and save a portion of expenditure on wages.
Poor tracking of expenses is one of the top 10 most common ways businesses waste money.
Without keeping tabs on your expenses money can fly out the door as soon as it comes in, on things such as corporate travel expenses and client lunches.
Penny Inc takes the pain out of expenses and makes it easier than ever before to keep your business spending in check.
We have integrated a smart expense management app with a prepaid debit or virtual card, letting you track employee business spend in real-time, with transactions automatically downloaded into your online accounts ledger.
This eliminates the need for petty cash and manual reimbursement claims, saving you time and money spent inputting data.
And most importantly, it removes the commingling of personal and business spending forever.
You can also set parameters on employee spend depending on the type of purchase (i.e. fuel only) or the spending amount.