One of the best things about running your own home-based business or working as a network marketer is that you have complete control over your income. From creating your own rates to bringing in more business and even giving yourself a raise, you have ultimate freedom over your profit and income.
When you keep your expenses organized, you can actually increase your income. In fact, this is one of the best ways to boost your profit so that you can earn more money, achieving a lifestyle of freedom that allows you to live the life you want.
Keep a Log of Favorite Vendors
You can actually waste a lot of money by looking for a new vendor every time you need supplies or services. The problem with doing this is that you often spend a lot of time trying to find what you need and shopping around for the lowest price.
Instead, keep a log of vendors that offer great prices and whose services work for you. That way, when you need something all you have to do is look up contact information and get in touch.
Another benefit of this strategy is that you will begin forming valuable relationships over time. Working with the same providers on a regular basis can help you score discounted rates and build a relationship of trust, so you know you are getting your money’s worth. It can also help you network and use word of mouth to build your own business, as you refer people to your vendors and they refer their contacts to you.
Know your Expenses and Review them Regularly
As your business grows, it’s so easy to lose track of where your money is going. Sure, you know what your monthly or quarterly profit is as compared to your expenses, but do you know what those expenses are?
Keep track of your monthly expenses so that at any time you can review them to see where your money is going. This lets you easily find out where you can cut costs, reduce expenses by changing vendors or stop paying for services you are no longer using.
For example, if you aren’t using a software program any more, you should stop paying the subscription fee. When was the last time you looked at your cell phone plan? This list can help you check to see if there are more affordable options than the one you already have.
I have found that knowing what my expenses are helps me cut costs and save money. Financial management is a huge part of having a successful and profitable business.
Write Off as Much as Possible
Finally, you probably already know that you can write off a lot of your business expenses. Create a system for keeping track of all of your expenses so that when you file your taxes you will know exactly how much you spent on your business throughout the year.
You can use a simple file system, a spreadsheet or accounting software to keep track of expenses and organize them by date and category, so your books will be clean and easy to refer back to.
I also encourage all business leaders to learn what kinds of expenses are eligible to be written off; as there is a chance you aren’t taking full advantage of this opportunity. For example, did you know you can write off a portion of your utility bills if you have a home office? You can also write off things like continuing education expenses and insurance costs.
If you need help getting started or finding out what expenses you should write off, work with a tax specialist or certified accountant who can help you set up a system that helps you prepare for tax filing and make sure you aren’t paying more than you need to.
As a business coach, I help all kinds of business leaders create strategic plans, which include financial goals and strategies. If you need help regaining control of your finances or just want to learn how you can earn more while working less, contact me.