Budget During The Holidays – It Can Help Your Small Business!
The holidays can be an exciting time for many, but it can also bring on financial stress. If you have a store or a small business, it is easy to spend more money than usual around the holidays, but there are also ways to save. Here are a couple tips on how to budget during the holiday season.
Set A Budget & Stick To It
If you have a local shop or small business, then it is likely that you will decorate your building for the holidays. This not only spreads holiday cheer, but it also attracts potential customers and draws them in to learn more about what you do. You may also be spending money on gifts to give away with purchases or annual gifts sent to loyal customers. Whatever the case may be, this additional spending can add up, and it is essential to keep holiday spending limited.
The first step to limit holiday spending is to set up a budget. Start by projecting your businesses’ income and check your current financial standing.
Then list out what the money is to be used for – decorations, goods to give away for free, food to pass out on certain days of the week, etc. Once you know how much extra money you have to spend, you can then set a budget. Be sure to add a little wiggle room as it is necessary to stay realistic.
Be Careful With Credit Cards
Using credit cards during the holidays can be very helpful to many, but they can also be slippery slopes. Even if there is a budget in place, credit cards make it easy to go beyond a spending limit and allow businesses to rack up debt that will take time to pay off.
If a credit card is needed to make necessary purchases, use a card with lower interest rates. This will give peace of mind knowing that it can be paid off without worrying about accruing more debt.
As previously mentioned, you might want to set a budget for holiday spending. You can also try to pay in cash as much as possible. Stretch the budget across all items, and then stop shopping once the money has run out. If cash is used, a credit card is not needed, and small business owners won’t have to worry about paying off debt in the future.
We understand that the holidays will seem different this year, but it will still be a great time to give thanks and celebrate. The last thing needed is added stress, so be sure to use these budgeting tips to ensure that your small business has a smooth and successful holiday experience.
As always, if you require accounting or bookkeeping advice, Taurus CPA Solutions is here for you.