Whether you joined your company for the additional income, the fun, the products, or the tax benefits, taking the following steps will enable you to get control of your business finances for higher profits and greater peace of mind.
— Control Your Spending
Write down in advance what you will need for your business in the coming month. First, focus on business essentials such as catalogs and show supplies. Then, be conservative when adding additional expenditures like buying equipment for your office, or supplies for organizing.
— Be Creative
Necessity is the mother of invention. Find ways to reduce unnecessary expenses by thinking creatively. Invite a prospect to your home for dessert and coffee rather than taking her to lunch at a restaurant. Make long-distance calls to customers and hostesses on your cell phone if your plan includes free long distance minutes. Find new ways to save!
— Get Organized
Disorganization not only costs you time, it costs you money as well! Avoid wasting money on too many copies, or duplicating forms, by organizing your files. In addition, have a place in your wallet, and a file in your desk, where you place receipts for business expenses. Imagine the thousands of dollars in tax-deductions you may have missed, simply because you did not keep a receipt.
— Track Every Business Expense For The Month
At the end of each month, total what you have spent on your business. Consultants who are maximizing tax benefits keep two totals: “Essential Expenses” and “Maximized Write-Offs”, so they can see the additional benefits they are enjoying from their legitimate home-based business expenses. Write the highest total on the outside of a 9X12 envelope for each month.
— Track Your Income
List all your income for the month on the outside of the envelope as well. These will include Retained Profits (the percentage you keep from each sale or transaction), Overrides (the amount earned on your sales volume), and Bonuses (volume bonuses).
— Compare Income To Expenses
Subtract your expenses from your income, and evaluate the results. Keep in mind that if you are maximizing your tax benefits by writing off every legitimate expense you would incur whether you had a business or not, you may show a loss that does not truly reflect the profitability of your business. This saves you tax dollars!
— Make Necessary Adjustments
How can you reduce expenses next month? Are there expenses, such as mileage that you are not taking advantage of? How can you increase your income next month? These questions will help you get greater control of your business finances and give you a feeling of confidence and success!
Steve Gaghagen is an actor, vocalist, director, writer … and “Recovering” Realtor! Over the last several years he’s become a successful Internet and Network Marketer. Steve works from his home in glorious Big Bear Lake, California, and spends much of his time with his 3 dogs, Roxie, Cuinn, and Toby.