Poor Financial Habits to Drop in 2022 – Business Owner Edition

Poor Financial Habits to Drop in 2022 – Business Owner Edition
Enabling poor financial habits will only slow down the progress of your business, and cause you to lose out on huge profits. However, you can’t change a habit unless you know it’s a bad one, to begin with. To start fresh in the New Year, here are the five worst financial habits to drop in 2022.
  • Overspending on Advertisement
There’s a ton of buzz around the advertisement. From social media ads to billboard ads, you might feel tempted to invest an exorbitant amount of money into your business ads. While advertising gives you greater exposure, spending a lot of money on expensive ads doesn’t necessarily mean it’s effective. Don’t fall into the mindset of thinking advertising is the only way to reel in customers. Instead, think about how you’re communicating to your customers through marketing and what channels would be the most effective to reach your individualized target audience.
  •  Not Utilizing Business Tax Benefits
Business owners are eligible for generous tax deduction benefits. Unfortunately, too many businesses are unaware of how they can save on taxes. As businesses, you are qualified for substantially lower company tax rates, asset write-offs, and the ability to contribute to your super for lower tax rates. As such, make the most out of these perks.
  • Impulsive Spending
If you fall into the habit of buying anything you want, you’re digging yourself and your business into a deep hole. It’s not always necessary to buy the most expensive or high-quality products and services. However, it is important to assess and differentiate between needs and desires.
  • Doing Everything Yourself
You might believe you’re saving money when you take on all the roles in your business – finance manager, secretary, janitors, etc. However, this can put your business in jeopardy. For example, let’s say you need someone to build your business website. If you have no prior skills, you’ll find yourself wasting hours and ending up with a product that doesn’t meet high standards. Hiring a professional for tasks you do not have experience with is considered an investment. In the long run, both you and your business will benefit.
  • Not Keeping a Record of Your Finances
Make financial record keeping a habit in the new year. Otherwise, you can’t keep track of your expenses and profits – that’s the recipe for a failing business. Hiring a professional to keep tabs on your finances can save you a lot of trouble and time. At Strategiq, our team of experienced CPAs and business advisors can help draft balance sheets and profit/loss sheets so you can stay on top of your finances at all times. This gives you a greater awareness of all the spending, saving and investing happening within your business.
If you’ve picked up any of these habits, it’s best to leave them behind for the sake of your business. But you don’t have to do it alone. You can reach out to any one of our financial or business advisors at Strategiq who can help sharpen and polish all your business finances to start fresh in the New Year.