It's that time of year again when the temps start to rise and the pollen counts start to soar. Spring is in the air! Along with the freshness of spring comes a renewed sense of motivation to clean house - both inside and out. So why not use that energy to give your finances a good scrubbing, too? Here are ten tips to get you started.
1. Dial in on direct costs
This should be priority number one in 2022. Seriously. If you’re not adjusting your prices to keep up with increased direct costs, you’re losing precious profit. Don’t wait until four months after year-end, to review accountant-prepared financial statements, to prove it to yourself. Drill down now and adjust your prices accordingly, today!
2. Lock in lower rates
If you have a credit card balance, call your card company and ask them to lower your annual percentage rate (APR). They can do it at no cost, but only if you ask, and if you've kept current with payments. Also, see if you can get cheaper monthly rates on cable, cell phone, merchant fees, and insurance providers. You can often negotiate lower prices if you mention lower rates from competitors.
3. Unsubscribe from unused apps
Like me, you may find yourself signing up for free trials of subscription-based services and then forgetting to cancel them before you start getting charged. Before you know it, months of charges have been applied and you haven’t even used the service. Clean up your finances by using a service like Trim, which can help analyze your spending patterns and identify unnecessary expenses.
4. Clean up your credit
A healthy credit report is a valuable asset for any Founder as it ensures you have the best possible chance of getting approved by lenders and will often determine your rate. What’s on your credit report factors into your score, for all to see. Founders often find discrepancies, so to clean up any errors that may be dragging down your score.
5. Inquire on insurance policies
Make sure your business has the right insurance, for the right people, for the right reasons, at the right rate. If you have any questions about your policies, now is the time to call your insurance agent. Don't wait until something happens, and then realize that you're not covered. It's better to be safe than sorry, so make sure you understand your insurance policies. You may also find you can save money by consolidating coverage, switching insurance companies, updating current policies, or altering deductibles.
While you’re at it, check to see if you need to add or update your beneficiaries. Having clear intentions about beneficiaries can create a smoother experience should something happen to you.
6. File your financial docs
File. Toss. Shred. It’s time to organize your financial documents. You'll be glad you did when the numbers you’re looking for are at your fingertips. Collect all statements related to both income and expenses (bank accounts, payment processors, online sales, email receipts, etc). Don’t forget to also assemble your tax, insurance, corporation and estate documents. Collect them, organize them, and then store the ones you need, and shred the ones you don’t.
7. Move mobile balances and rewards
Are you using a mobile payment app? If so, it's good form to transfer balances to your bank account. Between apps like PayPal and CashApp, your money could be scattered in a number of different locations. Go through your mobile payment apps and transfer the balance to your bank account. Not only will your money be protected, but you’ll earn interest, and having your money in one place will help with your financial spring cleaning endeavors.
While you’re at it, if you use credit cards with cash-back rewards, don’t forget to transfer that cash into your bank account as well. Sometimes, cash-back rewards can expire, so be sure to check the terms of your card and make regular transfers.
8. Pack in the paper
Avoid clutter piling up on your desk by going paperless. Banks and credit card companies often default to mailing paper statements every month. Take the time to log in to your accounts and go paperless to receive your statements and other communications online. Just be sure to set up the proper folders so that you can move e-files quickly and efficiently without having them pile up in your inbox.
9. Polish your personal budget
As a Founder, it's important to recalibrate your personal spending, saving, sharing and investing habits. What areas of your budget need to be adjusted? Is your business paying you what it needs to ensure the financial security of your family? Keep in mind we live in a society where people tend to do what they can with what they make. As an entrepreneur, you have the advantage of uncapped earning potential. So with that in mind, tidy up your finances and secure your future. Founders can create their own financial destiny - make sure you're making the most of it!
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10. Spiff up your schedule
Track your time and become aware of how many minutes [or hours] you spend doing non-impactful work that could be delegated to someone else on the team at a lower rate.
So there you have it, our top 10 tips to clean up your corporate finances. Implementing just a few of these strategies can make a world of difference in your bottom line. But don’t stop here! The clearer you become, the more confident you’ll be.
Hit Subscribe for more insights and intel that will boost your bottom line subscribe. Or hit us up for help putting any of these tips into practice. We’re after all on a mission to help Founders achieve their financial goals!