This blog is about saving your business money in 2021. Business owners often get immersed in their business and overlook ways to save money. In this blog, we will reflect on the following methods from past blogs of saving your business money:
Tax deductions that offer huge savings when you file your small business taxes in the coming months
Ways to repair your credit so you can renegotiate loan and credit terms
How to build business credit quickly
Business cost-cutting methods
Saving for retirement
Tax Deductions for 2020
Even though 2020 is behind us, paying our 2020 taxes is a task that is still looming large in our future. We knew it was coming, and now Tax Day is less than three months away. But this year doesn’t have to be quite as bad. Why? Because this year, you’re going to take advantage of every tax deduction you and your accountant can think of and legally get away with. Too often, business owners simply fill in the blanks and don’t pursue the legal tax-saving deductions that could actually go a long way toward fattening their business’s bottom line.
This year, Tax Day is on Thursday, April 15, 2021. Before then, take a look at our blog with suggestions on deductions relating to business-related meals, insurance, rent, taxes, utilities, advertising, depreciation, education, legal and professional fees, and salaries. So take advantage of all that you can because you worked hard for your money, and you want to keep as much as possible. If Uncle Sam tells you that it’s okay to make a deduction from your small business, you have every right to take advantage of that deduction, thus saving your business and yourself some much-needed money! To read the entire blog, click here.
Repair Your Credit
Is your business credit not quite where it should be? If so, don’t feel bad because you’re not alone. So this year, you are going to take control of your credit and repair it as much as possible. In doing so, you can actually save money because better credit will allow you to renegotiate loan and credit terms. For instance, the mortgage on your brick and mortar business might have a high-interest rate that may have sounded good only a few years ago. However, now the interest rates are some of the lowest they’ve ever been, and you can capitalize on that with good credit.
This blog lists the steps you can take to repair your credit including checking your credit score, making timely payments, utilizing your credit, increasing your credit limit, protecting your credit history, paying down your credit cards, and more. Even though this is business, it’s like a game with rules and results. You have to play the credit score game by their rules to raise your credit score enough to reap the benefits of a higher score. To read the entire blog, click here.
Build Business Credit Quickly
As mentioned in the previous two paragraphs, a good credit score is extremely important for a small business. It can allow you the freedom of expanding your business, changing directions, hiring more employees, and ultimately making and saving more money.
This blog explains the criteria used to determine your business’s credit score, and then it goes on to show how to quickly build your business credit score through a variety of methods including disputing and erasing negative information, setting up certain corporations, paying bills on time, keeping a low credit utilization rate, and negotiating with companies. To read the entire blog, click here.
Cutting costs in your small business is probably the most obvious method listed, but business owners often get so bogged down in other aspects of their business, they forget to stand back and take a broad look at their business to see which extraneous costs can be eliminated. If some method can easily be changed resulting in your business saving money, that should be explored and implemented.
There are several methods of cutting costs in business, some basic and some more complicated, and these methods include negotiating contracts, asking for interest rate reductions, upgrading equipment, improving operational efficiencies, and even improving customer service. When you can cut costs without compromising quality, it will be well worth your time to investigate which costs can be cut and then cutting out those unnecessary costs immediately. To read the entire blog, click here.
Saving for Retirement
Saving for your retirement isn’t exactly cutting costs, but it is what you do with those savings gained from cutting costs. This blog discusses saving for retirement including different types of employer’s retirement plans, Roth IRAs, catch-up contributions, target-date funds, becoming debt-free, working part-time in retirement, and paying off your mortgage early. To read the entire blog, click here.
Take a look at these blogs mentioned and see how you can save your business money and eventually retire comfortably. You might find something you have previously overlooked including how to save some extra money, which is always a good thing.