Tips On Building A Cash Reserve For Your Business

Posted in Executive Suite on April 1, 2014

One of the most important things for a new business to consider when they are first starting out is saving money to put back for a rainy day. Having a cash reserve with up to six months’ worth of expenses in it will help you to prepare for the future and help to take stress off of you when business gets a bit slow. Instead of waiting until a catastrophe happens to act, you need to be proactive and start saving immediately. Here are a few tips on building a cash reserve for your business while operating out of an executive office.executive office

Budget Right Away

The first thing you need to do when you are trying to build a cash reserve is develop a budget that you will be able to stick with. The budget needs to include all of your expenses, such as rent on your executive office and any regular supplies you will have to buy each month. This will help you to see where your money is going and will allow you to cut corners on expenses that are not really needed each month. The money that you have left over after all of your expenses are paid can be put into your cash reserve and you can start the saving process.

Taxes

One of the most common mistakes that are made by a new business owner is not putting back adequate money for their taxes. Usually, a new business owner will have very limited knowledge of the business tax code and their inexperience can end up costing them greatly. You should seek the advice of an accountant to see what type of taxes and the amount they will cost you so you can prepare. Paying the proper amount of tax is just as important as the rent on your executive office, so be sure to prepare and develop a separate cash reserve specifically for taxes.

If you find yourself in need of a quality executive office that is affordable, then look no further than 90 State Street Executive Suites. We can offer you the accommodations and amenities that you need at the price that you can afford.