At this point in the year, many of the nation’s small business owners have been able to successfully complete and submit their tax filings for 2013, and may now be waiting on a refund check from the Internal Revenue Service. However, it’s important for these entrepreneurs to keep in mind that there are right and wrong ways to spend the money received on those refunds.
With millions of small businesses slated to receive refund checks – many of which may be sizable – in the next several weeks, there could be a rush on spending, but experts generally agree that they should approach such an issue cautiously, according to a report from Brandpoint. It’s not that spending on a small business is bad, of course, but more that those who don’t formulate a careful plan may end up regretting their decisions, and it might be wise to consider all options before making any moves.
“A first step you should take is to speak with your banker,” Robb Hilson, small business executive for Bank of America, told the site. “A dedicated small-business banker who knows you and your market can help you make the best decisions for your business – not just during tax season, but all year round.”
Where can that money go?
One of the best places small businesses can invest in themselves these days is through the purchase of new technology that might allow them to streamline various aspects of their operations, the report said. That could mean buying new computers for workers, getting a new point of sale program for a cash register, or buying software that will help to process payments – both incoming and outgoing – more quickly.
Companies might also opt to invest that money in more advertising, whether it’s in the real world or online, as a means of helping to highlight some new offerings that might be available, the report said. It can also be wise to spend that on training programs that can help staff to do their jobs better or more efficiently.
Owners who believe they need a little more flexibility financially might want to consider the ways in which their everyday expenses can be slashed to improve their bottom lines. Shopping around for more affordable small business insurance – like commercial insurance, for example – might serve to put them in a far better position by saving as much as a few thousand dollars per year.
