Expenses pile up. You pay them, and they pile up again. More pile up before you’ve even had the chance to pay the first. As your business grows, this reality hits you harder and harder.
Of course, this is merely a consequence of your success. You have too much work, and so you hire more employees. You need a more professional website, and so you contract an expensive web designer. You need high-speed internet to cater to your growing staff, and that costs extra.
Expenses are not a bad thing. They’re simply part of a functioning business.
But they can be more than that. There are ways you can use your expenses to save you money. Your expenses are not going away, and so you should take advantage of their existence.
Here are three ways to make the most of your spending like a small business.
1. Sweat the small stuff (at tax season)
I know a lot of small business owners who are all too generous with their tax returns. This is especially true with freelancers who need nothing more in their home office than a laptop and internet connection – both of which they would have anyway.
But savvy small business owners are not so ready to give their hard-earned money to the government. At tax season, you should start sweating the small stuff. Your internet connection at your home office is a business expense and can be deducted from your taxes. Any stationary you bought goes in your returns as well. Maintenance on a laptop lunches your employee(s) had, cosmetic improvements to your workplace. You should take advantage of the fact that your expenses are growing. This way, you will receive a higher return that will go towards building your business even further. You should contact a tax professional in your state regarding your taxes.
2. Use rewards programs
What are you using to pay for your expenses? If it’s a generic credit card, you should start doing a bit more research. The higher your expenses, the more you can take advantage of rewards programs. If employees have business credit cards, make sure they’re following all the guidelines that get them the most rewards possible. When booking flights, make sure you’re getting miles to use on future trips.
If you’re unsure about how much rewards programs can benefit you, try using a credit card rewards calculator. The more expenses you have, the more you’ll be rewarded.
3. Keep your employees happy
One final point is that the higher your expenses, the more comfortable you will be to spend a little extra to add flair to your employees’ lives. Instead of sending them to mid-range restaurants for work lunches, take it a level up. Instead of an ugly, utilitarian workspace, dedicate some cash to aesthetic improvements.
Not only is this money you’re less likely to miss, but with every expense comes tax breaks and rewards. By keeping your employees happy and proud to be working for you, you will increase their productivity as well. Ultimately, everyone wins.
Latest posts by George Meszaros (see all)
- 7 Tips to Make Smart Financial Choices When Starting a Business - October 22, 2020
- 3 Secrets to Start a Small Business on a Budget - October 21, 2020
- 5 Quick Marketing Tips For New Businesses - October 21, 2020