Today we are providing some Tips of Financial consulting for entrepreneurs:
1 – Monitor sales:
You should check the difference between the incoming and outgoing payments on a weekly or monthly basis. It is important to keep your cash flow in positive territory. A payment plan and financial throttle preparation can help you here by discussing a credit limit before it becomes necessary.
2 – Make it easy for customers to pay:
The easier it is for your customers to pay, the more likely they will be to pay on time. Issue invoices quickly and provide simple payment instructions, which can ideally be done online.
3 – Don’t leave too much money in your account:
Even if the business is going well, you shouldn’t leave a lot of money in your account. This could result in large losses through interest.
4 – Consider rescheduling:
Given that average interest rates have fallen sharply in recent years, it makes sense to reschedule loans. Here, an old loan is replaced with a new one, which saves money. Debt rescheduling is good, for example, for expensive overdrafts, but in principle, almost all credit can be rescheduled.
5 – Deduction of anything possible for tax purposes:
Find out what is the tax deduction for your expenses. Not only does this include mileage and meal allowances on business trips, but also living space if you use it for work. You can also sell the purchases you made before starting your business. Today we are providing some Tips of Financial consulting for entrepreneurs:
6 – Create a budget plan:
In order to run your business well, it is important to have a budget plan ready. Plan all of your expenses in advance so that you don’t run into financial trouble. All sources of funding must be established and matched with expenditures. Fixed and current amounts as well as one-time payments should be included here.
7 – Take care of your pension:
New founders are especially interested in growing their business. Pensions are often overlooked and threaten the poverty of the elderly. Investing in real estate, investing in oil (for example with the help of oil profits), or in a private retirement plan can be beneficial.
8 – Set financial goals:
Basically, you never invest until you have set up a plan and set financial goals. Analyze where you are right now and the goal you want to achieve. Your financial plan will be designed for this.
9 – Consult an expert or specialist:
A financial advisor or accountant can be very helpful in checking cash flow and managing the budget. He records transactions, helps prepare tax advice, and organizes expenses. In addition, the financial advisor has the necessary knowledge of the balance sheet and the tax regulations in force.
10 – Flexibility in the growth phase thanks to the holding structures:
The holding company is suitable not only for saving a lot of taxes on checkout but also for outsourcing business risks and business assets.
Some founders with a vision can start right away with more than one employee. There are often two specific stages of growth: the first has up to 10 employees, and the second has up to 20 employees.
It is essential to survive these stages. It is best for the company to be flexible for as long as possible during the growth phase. Therefore, a founder should consider outsourcing business assets and business risks.
11 – Actual and target taxation:
In the case of target taxation, the legal rule, sales tax is due at the end of the pre-registration period in which you provided the service for the customer. This also applies if the customer pays before you have performed the service. You enter the sales tax on the tax return. If you have chosen actual taxation, the tax should only be paid at the end of the pre-registration period in which the customer actually paid.
The choice of tax model can have an impact on liquidity. Depending on the business model and billing concept, either variant may be beneficial. If there are large discrepancies between providing the service and paying the service charge, actual taxation is usually the best choice.
With withholding tax, you may need to pay the tax before the tax appears in your account. If the payment is not made in full, you can effectively recover the sales tax, but it takes time and you also miss the interest for that period.
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