If you’re an entrepreneur, you’re responsible for a lot more than yourself. And whether you have a large team or work solo, there’s one responsibility that never goes away: handling your finances. Business finance is a far cry from personal finance, requiring constant attention and seasoned insight. But with a little insight and practice, you can steer your company to financial success.
Start by evaluating these three critical areas of business finance:
Pay Your Taxes
There are two major differences between personal and business taxes. Businesses have to pay taxes quarterly, and they are also required to pay estimated taxes.
If you expect to owe more than $1,000 in taxes for the year, you have to estimate what you will owe. If you come up short, there is a penalty. The best rule to follow is to pay 110% of what you owed last year, unless you saw a large spike in business profits.
Watch Financial Performance
No one wants to be in debt or cause their business to fail due to financial obstacles. You need to have the proper funding, but a little debt is acceptable. If you are approved for a loan, this will allow your business to take off.
With that being said, you also need to keep an eye on your money. Don’t be afraid to cut costs somewhere along the line. More than likely, you can find another way to make up for the cut costs that is actually less expensive.
Don’t Forget Your Employees
Protection is a necessary business cost. While you are not required to offer employees health insurance, every business is required by law to offer workers’ compensation and unemployment insurance. There are even insurance plans for data breaches. According to a new Experian survey, more than half of organizations attribute a security incident or data breach to a malicious or negligent employee.
Building Opportunities for Small Business
Small business finances are much larger than personal finances. If you become overwhelmed, don’t hesitate to hire professional help. If you are looking for financing to start a business in South Carolina, give Countybank a call at 864-335-2400.