I was having a lovely lunch with a colleague recently. She is generating multiple six figures in her biz, and is on track to double that in the next year.
In celebration, she whipped out a $50 bill gave it to the waitress, and said lunch was on her.
Soon, the joy in her face was completely gone. Once the waitress placed her receipt in front of her and she immediately went into a cycle of overwhelm.
She looked at that little piece of paper as if it had crapped all over her great day.
It’s a receipt that will need to be entered into her biz spreadsheet when she got back to her office. Ugh. Another thing for the to-do list, which is already a mile long… And quite frankly, the receipt will be lucky to make it back with her at all. She tends to misplace them constantly.
Many business owners have this problem.
By doing this, you’re actually creating a BIGGER problem for yourself.
And it’s showing up as a HUGE cash flow leak in your biz.
For more, read on….
Traditionally, nothing beats cash when it comes to paying for the things you want and need. As a business owner, that isn’t always the case.
It’s creating a HUGE cash flow leak in your business.
Here’s why – cash payments for anything business related has a good chance of never getting recorded.
- Entering business receipts into a spreadsheet is time consuming.
- Cash receipts seem to disappear or typically end up at the bottom of the washer in little bits and pieces.
And that is a cash flow leak you can plug in your business immediately.
Not paying cash for anything business related actually puts money BACK into your pocket.
Tax deductions. Let me explain…
By using a financial instrument (business check, debit card or business credit card) for all of your business transactions, they are captured automatically and electronically.
Next, buy desktop accounting software (Quickbooks on Amazon.com for $179 AND it’s a tax deduction!) and put that puppy on automatic pilot. Have the program directly connect to your business bank accounts and upload all of your transactions automatically. The only thing left is to categorize the receipts as they come in.
Another thing on your to-do you are thinking?
Do it yourself, or hire someone for 1 hour a week (yes, for a small business, 1 hour will do it!). Adios Excel spreadsheet!
You knew this break up was long over due anyways…
And at the end of the tax year, your tax preparer has more to work with. When they have more to work with, more cash flow, more tax deductions, and credits you can take!
And you know what that means?
More ching for you, less for Uncle Sam.
Making Bank Money Tip:
Ready to generate an additional cash flow stream for yourself?
This strategy is most likely already there for you, in plain sight ready to be activated.
This cash flow tip can begin to pay for your everyday personal items without ever having to take your wallet out of your pocket!
Here’s how you do it…
Use your business credit card for everything in your business, and use the points to purchase personal items. For example, here’s what we set up for my client Kristin….
She uses her business credit card for all business purchases and expenses.
Next, she pays it off every month using revenues allocated to her operating expenses. By doing this, the points she generates, has created a cash flow source to buy things for her personal needs.
Specifically, we tied her credit card points to her Amazon.com account.
Whatever she needs, Kristin uses her points to purchase, receives her packages within 2 days, without leaving her house. Cash flow, time back in her day, and tax savings all in one nice little package.
That’s what I call…making bank baby!