Friday, May 24, 2024

Financial Tips for New Business Owners

The 2020s are challenging for first-time business owners, particularly regarding leased property, fuel purchases, and commercial credit ratings. Entrepreneurs need all the advice they can get. For small transport companies, the focus is on operating an efficient business from day one. Fleet supervisors aim for a high level of fuel efficiency for that reason and many others.

Additionally, ownership teams in partnerships can reduce recurring costs by making sure that their organization is able to establish a high score. Other tactics that can speed up the journey from opening to profit making include the use of joint property leases, or shared space, remembering to keep all personal and commercial bank accounts segregated, and retaining an experienced tax expert. If you’re establishing a for-profit entity in 2023, consider the following points before moving ahead with the venture.

Fleets Should Focus on Fuel Efficiency

Fleet managers do a lot, but one of their overall responsibilities is to make sure that vehicles under their control operate efficiently. The good news is that any supervisor in a transport firm can wage war against record-high fuel prices by doing everything possible to increase efficiency. Following suggested maintenance schedules, avoiding excessive idling, and using high-grade fuels are just a few of the tactics that modern managers employ. This principle is particularly applicable to companies that own hundreds of trucks, cars, buses, and vans. In that case, even a small bump in fuel efficiency can mean huge savings for the business.

Establish Commercial Credit ASAP

There’s a lot of misinformation about commercial credit ratings. The truth is that it’s relatively easy to establish a solid credit reputation by following a few steps. In addition to paying all bills on time, work with one vendor and ask for a small line of credit. Be sure they report your arrangement and on-time payments to the credit bureaus. Then, open two bank accounts in the company’s name, one for savings and the other for check writing. Ask the bank if they will issue you a secured commercial credit card with a low balance. Use the card, but pay it down to zero each month. After about 180 days, check your credit rating to see if it’s risen. In most cases, if you have followed the above steps, it will have gone up.

Hire a Competent Tax Expert

Far too many first-time owners make tax-related errors and omissions when filing their returns. Some need to file quarterly but don’t. Others use the wrong forms. There are multiple ways to go wrong when you try to go the tax route alone. Start off on the right foot by hiring an experienced business tax expert. During the first year of operations, there are many unique deductions and credits available to the average entrepreneur, and only a tax specialist can offer clear guidance on these and related issues.

Keep Bank Accounts Segregated

It’s a simple task to keep all business and personal accounts in all banks and financial institutions totally separate. When tax time arrives, mixed accounting can turn into a nightmare. Some entrepreneurs prefer never to use the same bank for their family savings and commercial account. It’s imperative to follow this guideline regardless of how small your company is.

Sam Allcock
Sam Allcock
Sam heads up Cheshire-based PR Fire, an online platform that has already helped over 10,000 businesses to grab widespread media coverage on their news at an extremely accessible price point.

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