In running a home business, does anything keep you awake at night?
While many home business owners will say everything, others will indicate they have pretty much everything under control.
That said financial issues will oftentimes crop up as the number one reason for angst among home business owners.
Getting more specific, dealing with the Internal Revenue Service (IRS) can provide some anxious moments for individuals, especially those who depend on their home business operations for their main source of income.
So, will you let taxes get the best of your home business?
Review and Recheck Where Your Dollars Go
In order for your home business to have its best chances for survival, you need to be on top of where each and every dollar you spend is going.
Whether it is for home office supplies, marketing and advertising in order to gain new clients, covering your tax responsibilities since you are not working for someone else, the list can seem a little taxing at times.
With that being the case, here are a few financial pointers to guide you, allowing you to breathe a little easier when it comes to overseeing your home business dreams:
- Supplies – Since you do not have a corporate employer providing you with simple office supplies, these will come out of your wallet or purse. While you can write-off a number of items when doing your taxes, keep the list reasonable, avoiding sending a major red flag to the IRS. In shopping for the best office supplies at the best prices, make sure you research your needed vendors. Look for items that can be purchased in bulk, thereby allowing oftentimes for more savings. When it comes to the more expensive items like your office computer, printer and other such needs, also shop around for the best bargains;
- Promotions – Once again, not being under a corporate umbrella means you do all or the bulk of the promotional efforts. Be sure to do as much for free as possible. One area where this can be accomplished is with social media. By turning to social networking sites, you can promote your brand on a number of sites. Whether you opt for LinkedIn, Facebook, Twitter, Instagram, Snapchat or others, maximize your time and effort on each and every site. Just as importantly, be sure to engage with customers (current ones and those you hope to turn into customers soon). By conversing with customers on social sites, you can help them in addressing any questions, concerns, issues etc. they may have with your home business or overall industry;
- Taxes – Typically not one of your favorite topics to discuss, taxes nonetheless must be dealt with on a yearly basis. You may find yourself turning to friends and/or other home business or small business owners to recommend a tax lawyer in New York or elsewhere. Always look for someone who not only knows the tax legalese, but also comes highly recommended. If he or she has been in the business for many years, they likely have built up a sizable clientele during that time. You also want to make sure that they look at you as their priority, not the other way around. Having mentioned social media a moment ago, take a look at each lawyer’s website and social networking efforts, seeing which ones seem to be connected with the clients or potential clients they serve. This will help you get a better idea of which lawyers are truly engaged with the public and which ones are more interested in serving their own needs.
If successfully running a home business has been a dream of yours over the years, are you currently living or planning for that dream?
Yes, being a home business owner can prove both physically and mentally taxing at times, but the rewards over time can also prove to be worth all the hard work.
In the event financial issues are your biggest area of concern in running a home business, take the time to make sure your financial house is in order.
When you do that, you stand a much better chance of getting a great return on your money, including when it comes to the tax man.