Now that the holidays are over, we all have New Year resolutions to make more money and get back into shape. This is the time to seriously look at your business and consider where it’s going financially. Unless your business is snow removal or snow tires, chances are you have some extra time to run a few quick numbers and plan for any cash shortfalls in your business. Remember, the only reason businesses close is because they run out of cash.
So let’s be honest, we’re taxed to death in Nova Scotia. And the more you make, the more you pay. Anyone who is sane hates paying tax, but it’s every kind of very illegal to not pay it. As a business owner, you have the opportunity to sneak earnings from your business directly to your pocket and no one is the wiser. Although it is understandable why you might consider doing this, there are good reasons to play by the rules and declare what your business really makes.
Recently I had the opportunity to have coffee with none other than The Evil Tax Man (who was actually really nice). This arose from a surprise phone call I received from CRA, wherein they apologized for dropping the ball in processing an HST filing from 2012. They simply needed copies of a few basic documents to rectify everything (and, like every business owner, I just had to dig them out of my massive box of unorganized paperwork).
Marketing campaigns are investments. Like any smart investment, they need to be measured, monitored and compared to other investments to ensure you’re spending your money wisely.
An easy way to increase your profits is to figure out exactly where they are coming from. Almost every business deals with at least several services or products (if you’re in retail this is likely into the thousands of products). Commonly it is assumed that as long as you are selling the product for more than what you paid for it and business expenses are being covered, then everything is fine; not so. You need to look at all the expenses attributed to that product to calculate the true cost.