Small Business Expense Tips
Running a small business is no easy feat in the accounting department. And if you’re a small business owner, that’s your department! Today I’m sharing all of my tips on not only managing small business expenses but also keeping them low.
I always wait to buy something until I absolutely need it. If you’re just starting out, consider this method to spread out the cost of buying all the tech and supplies you’ll need right off the bat. It’s temping to want to deck your office out, or get all the latest new software - but until you really get going, it might not be necessary. I only printed business cards when people started asking me for them.
Shop around for the best prices…and shop local. When it does come time to start printing business stationery or to get a fancy new laptop, do your due diligence in shopping around for the best prices. I have saved so much money by printing my business stationery locally, purchasing my laptop from an Apple authorized store vs. the Apple Store, or even just banking locally to avoid fees.
Separate your bank accounts. I will firstly admit I did this all backwards when I started, and I wish someone had stressed the important of this to me earlier. Put all of your payments into a separate account, calculate your average monthly intake, deduct taxes, deduct expenses, deduct contractors, leave a cushion… then decide what you can take. Once I knew how much was really “mine” per month for the taking, I set up an automatic bill pay in my business checking account - so a “paycheck” automatically is mailed to me once a month that I deposit into my own separate personal account.
Use accounting software. This is something I waited way too long on! During my fourth year in business (yes, I used Excel for four years - eek) I started using Freshbooks and it has saved me so much time and stress. When I was only sending a few invoices each month, it wasn’t too bad to manage in Excel, but tax time became a nightmare as my client roster grew and it made sense to spend the money on Freshbooks if I could spend that time doing client work that brought in more revenue. Which brings me to my next point…
Consider how much it saves you. Do the math! Determine your hourly worth per hour and consider how much time the new purchase saves you. If you can make up that time using your core skills and selling more product or services, it’s a no brainer.
Avoid the comparison game. You might know other small business owners or even follow them on Instagram and I’m sure you’re eyeing up what they buy for their business. That doesn’t mean you absolutely need it! Consider what you actually use your items for and how worn they really are before springing for “fancy”. All that you save is yours to keep!
If you liked this post, you’ll love the other Freelance Life posts I have written, too!
