Running a business can be challenging, especially for individuals who aren’t great at accounting. However, keeping your business financially stable is arguably the most crucial thing you need to do for your business to grow and succeed. Many business owners focus on bringing in more and more new business, which is great, but if you aren’t managing the cash flow you currently have well, you’re still going to run into problems. Here are several ways you can help keep your business running smoothly financially.
Create A Separate Account For Your Debts
You likely already have a bank account specifically dedicated to your business. However, consider setting up another account just for your business’ debts. For example, if you take out a business loan, you may not want to deposit that money directly into your business checking account. Often, loans have fine print that say that if you’re missing payments, the lender can withdraw funds from your account without notice. By keeping your debts separate from your business bank account, you can avoid lenders draining all the money you have to operate your business.
Ensure Your Taxes Are Paid On Time
One of your major priorities as a business owner should be to pay your taxes on time. The IRS may be able to hold you personally accountable for your business’ back taxes and the penalties for non-payment or late payment can be extreme. Additionally, tax debts are rarely dischargeable under any type of bankruptcy, so you will still owe these debts even if you file for business bankruptcy. Make your taxes a priority and pay these before anything else.
If you’re experiencing financial problems within your business, first look at your spending. While most businesses have to spend money to make money, you can cut your spending if you carefully examine the cash flowing out and where you may be able to cut corners. Purchasing cheaper supplies, paring down to the minimum amount of employees, and other ways to cut spending can help you more easily meet the critical financial obligations of your business.
When To Contact An Attorney
If, despite your best efforts, your business is still floundering financially, it may be time to consider bankruptcy. Joel M. Aresty, P.A. is a seasoned bankruptcy lawyer and can help your business start out with a clean financial slate. Call now for a consultation at 1-855 DOC LAWS.