Some financial planning tips are fail-proof. As trends change within the business sector, these tips will always be useful. Owning a small business is a big venture, and it takes hard work, preparation, and strategy to keep one afloat, especially regarding finances. Hiring a Certified Public Accountant (CPA) is one of the best things that you can do for your small business. We’ll do all of the financial legwork and strategizing so you can focus on other aspects of your business. Here are a few of our top and essential picks for financial planning.
Always Build an Emergency Fund
An emergency fund is like an umbrella on a rainy day. A golden rule is to have three to six months’ worth of living expenses, even after taxes, in an emergency fund. This rule works for anyone that doesn’t own a business. However, if you do own a small business, you may want to consider saving even more money. An emergency fund is so crucial because your business may take a downturn or have cash flow fluctuations. Emergency funds help small business owners, or anyone has peace of mind and a sense of security.
Keep Your Credit in Check
Credit is the lifeline of any company, but you also want to make sure that your credit is on point. Make sure to pay bills on time, at least pay the minimum even when money is tight, and examine your credit ratio utilization. A credit utilization ratio is the percentage of your available credit limits that you’re utilizing. Strive to keep this ratio below 30%. Doing so will keep your credit score where you want it to be.
Retirement and Its Relevance
A lot of people alarmingly live in the moment. However, as you age, it’s nice to relax, retire, and not work again. What this means is that you should and will need to prepare for the future. Allow us to help you set up an IRA. Instead of only investing your profits back into your business, various options such as stocks, bonds, ETFs, and mutual money programs. Does this all sound like a lot to take in or foreign? Well, we’re helping to help.
Seek Help from Bowman & Company
When you reach out to a professional, you can run your business with calmness and optimism. Hiring experts is so reassuring. A small business is a big investment, and we want nothing more than to help take the weight off your shoulders.
Contact Bowman & Company Today
Bowman & Company CPA, PC provides all of our individual and small business customers with experienced, accurate, and affordable financial services. Our financial services are aimed at decreasing your taxes and increasing your net worth through responsible, timely, and accurate record keeping. We offer our services to clients throughout the Washington, D.C. metropolitan area including Maryland and Baltimore County, Columbia, and Howard County. For more information on our offerings, contact us online or call us at (410) 381-8121. You can also find us on Twitter, Linkedin, Facebook, and Youtube.