We are only 27 days away from the start of the season of Fall 2017! Cut, minimize, reduce cash disbursements!
Generally during the months of September through December, most business owners and their tax consultants (CPA’s) conduct Year-End Tax Planning and also prepare to Forecast Sales and other financial metrics for the new year; 2018. Happy New Year !!
So, what I always recommend my clients do in the month of August is to review their current personal living expenses and also their business expenses AND evaluate which cash disbursements are completely unnecessary and thus creating a $$$$ leak!
- Do I need to pay for ALL of those monthly subscriptions of $10 each and above? How much use am I really making of these software services and applications? Why give my $$ away?
- Do I need to subscribe to ALL cable TV channels, even though I rarely watch them? Can I keep one or two instead of 7 or 10?
- Do I need to order take out food every night? How about finding simple healthy solutions to cook at home together with family as we chat about how are day went at work or at school?
- I love this one! How often do I need to buy a new iPhone or smartphone? Every Year?
- Business expenses: I always encourage business owners to sit down with their business team and CPA’s to gain a clear understanding of the return of investment on every $Dollar that is spent. Also, do a margin analysis: there are some products or services that will generate larger profits or margins because the cost or expenses are lower or minimal. This is a must exercise for every business in order to be profitable, and successful in the long term. This will also be the driver for choosing what products or services to focus on and promote for next year.
If you would like to chat further about this topic or any other topic of my Weekly Financial Tips, I invite you to reach out to me. Have a great weekend!