Use Your Small Business Tax Refund Wisely

How Your Refund Can Drive Results

Under United States Tax Laws, small business owners have a number of opportunities to earn a significant amount of money for their tax refund. For example, small businesses that report a net loss over the tax year can carry those losses back against the previous year’s profits, helping to offset those profits and earn them a larger refund. A tax refund can be an important or necessary cash injection for a business, and using these funds properly can help to drive further success for the business owner.

What You Should Invest Your Refund In

There are a number of ways you can invest your refund to help drive results in business. Depending on what your company needs, you have the ability to use those funds to help accomplish your goals. By putting a tax refund back into the business, it becomes possible to improve the business from within – extra funding provides the opportunity to launch new products, invest in marketing, and even purchase new technology. Here are some of the best ways a small business owner can use their refund.

Upgrade Your Business Technology

As many of us know, there is an amazing number of tools available to help small business owners run their company is the most effective, efficient and profit-producing manner. No matter what industry your company operates in, chances are there is something out there that can help make your business better. Unfortunately, many small businesses have to pass up this kind of technology due to budget constraints, but a tax refund is the perfect opportunity to invest in tech that helps the business grow.

Outsource Important Projects

As mentioned earlier, a small business’s budget can often hinder owners from doing many things that can make the company better. Many small businesses do secondary tasks themselves to help keep their budget under control – some of these projects may include customer support, payroll, accounting, marketing, and deliveries. Investing your tax refund gives you the opportunity to move some of this work outside the business. Not only does this ensure professionals are managing those tasks properly, it also means your employees have more time to focus on the business and their specialized work overall.

People are an Investment Too

Your employees are your most important resource, so investing in them only makes good business sense. It is important to make sure that employees feel appreciated and supported, while also making sure they have the most up to date education to do their job to the best of their ability. A staff that feels empowered and invested in by the business owner tend to work harder and be more loyal to the company – a report from ADP shows that organizations who do not invest in their people lose over $2,000 a year per employee due to lack of work ethic or employees who are overworked.

While it is important to ensure that your business receives the largest refund possible, it is even more important to make sure those funds are invested properly. A tax refund is “extra” money that is not built into the business’s established budget – this makes your business’s tax refund the perfect avenue to use when you need to make changes or updates to help your business thrive. Investing those funds back into the business, whether it is through technology or employees, is a smart way to use that money.

If you do not have your own business yet, maybe you would like to use your personal income tax return to start your own home business. You can start part-time and branch out over time as you become more confident. If this sounds like something you would like to pursue, it may be time for you to talk to Stacy O’Quinn. To learn more about Stacy, click here.

*Photo Courtesy of Chris Potter via Creative Commons License