Thursday, March 2, 2017

How to Effectively Manage Essential Business Expenditures

Keeping track of essential business expenditures ensures that you do not overdraft your account. Good management also ensures that you do not pay too much. These four tips will help you to manage your business expenses and keep your accounts up-to-date.

Get on the Budget Plan for Utilities

Find out if your utility service offers a budget plan. This plan estimates your average monthly usage of natural gas and electricity. 

You pay the same amount each month rather than a big winter heating bill and a low autumn bill. 

underestimate. You get a refund if your budget was an overestimate. 

Roofing for Your Business

Putting a new roof on your business is a considerable but necessary expense. Professionals, like those at Acoma Roofing, Inc., know that an asphalt shingle roof lasts for about 20 years. 

If your business is in a large building, consider a metal roof. Today's metal roofs are attractive, energy-efficient and last for about 50 years. It is worth the price of paying for quality materials and experienced roofers. 

You may be able to get a discount by having your roof replaced during the off-season or paying cash instead of credit.

Establish a Repairs Fund

If you do not want to deal with having to suddenly come up with the cash to pay for a huge repair bill for your business, establish a dedicated repairs fund. 

In general, you should put 1 to 2 percent of the building's value into the repair fund each year. If the building is worth $1,000,000, then a $15,000 annual repair fund would be average. 

Split into 12 months of payments into this account, this could be a more manageable situation for you.

Use an Electronic Budgeting System

Consider implementing an electronic budgeting system for your business. This allows you to accurately keep track of your quarterly estimated income taxes, payroll taxes, invoicing and operational costs. 

You could link this with your banking accounts so that you can have up-to-date information about your account balances. You may also wish to set up alerts when your business checking account falls below a certain level.

Having a repairs fund, doing research and getting recommendations will help you to manage repair and replacement bills. 

You can also look to electronic solutions for keeping track of your business expenditures. Keeping accurate logs of your income and expenses are keys to succeeding in your business.

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