Getting a Tax Refund? 4 Ways You Can Use It to Grow Your Business
You’ve done your taxes and you’re just waiting for your refund to come back. Somehow, you’re getting the biggest return you’ve ever gotten and you aren’t sure what you want to do with it. May we suggest investing back into your company to keep it constantly growing and expanding?
Yes, you might be tempted to reward yourself with some great new furniture, clothes, or something wild. But you should always be working to expand your business in bold and innovative ways. The following four investments are wise if you have a nice tax return to cash in this year.
Outsource Some Labor
Running a business is hard work, and your tax returns should go toward ensuring that you get the best possible results for your company. For example, you can expand your employee base by outsourcing much of your labor to other professionals. Freelance experts are an excellent choice for many reasons — particularly for the fact that they can take annoying jobs off the hands of your skilled employees.
For example, you can outsource your marketing needs to ensure that everything is done smoothly and efficiently. Marketing is something that you can do in-house, sure, but this takes up a lot of time that your employees could be dedicating to their official job duties. Finding outsourced marketers — or for any other kind of labor — helps to minimize lost time and streamlines your business operations.
When utilizing this source of labor, though, make sure that you talk to your tax specialist right away to learn more about the pitfalls of this approach. A high-quality tax calculator may be a good investment because it can let you know how much you are likely to pay in and get back each year from taxes. Utilize this information to ensure that you don’t end up paying more than you should for outsourced labor.
Reward Your Workers
You’ve hired the best employees you’ve ever had, and they worked hard this year — and every year — to bring you the high level of profits that your company deserves. Why not take some of that tax return and reward your employees for their excellent work? Investing in your employees is smart because you let them know that you notice their hard work and are willing to reward them for it, an assertion that can improve loyalty and company morale in many, many ways.
For example, your employees deserve benefits and rewards if they achieve a high-quality goal. Consider using some of your tax money as a bonus for your best employees. This approach has multiple benefits. First of all, your employees will work harder to get this bonus, and they’ll feel more loyal to you because you’re offering extra cash. This case is a win-win situation for everyone involved.
One fun way you can reward your employees while also helping your company’s bottom line is to send them to a conference or industry event. Use your windfall to promote your business at a trade show and pay your employees extra for traveling to these destinations to display your work. Don’t forget to give them a reasonable food and entertainment budget, as well, so that they can have a little fun while increasing visibility for your company.
Upgrade Your Office Equipment
Have you upgraded your copy machine lately? If you’re like many small businesses, your old equipment is probably pretty worn down and ready to be replaced. Take some of that old tax money, look through your old stock, and decide what machines, vehicles, or equipment you can upgrade to improve the effectiveness of your operations.
Don’t think that this upgrade is merely superficial, either: A faster copy machine can improve your employees’ efficiency by allowing them to move more quickly through their day. Upgrades to company vehicles can positively impact the safety and timeliness of deliveries. Or you can add a car with better gas mileage to your fleet to avoid excessive gas costs and keep your employees out of dangerous situations.
If you’re ready to get rid of old equipment but don’t quite want to toss it away, you can always rent a storage unit to house some of your items. This step is a wise one for those who plan on converting their old equipment through recycling. A variety of computer and electronic recycling firms exist to help your office go green by turning old junk into new items.
Offer Education Options
The old cliché says that you can never, ever have too much education for your career. This idea is accurate because you can always utilize new training and concepts to improve the overall quality of your business. For example, attending new training seminars can introduce you to updated equipment and processes that keep your company on top of the business market. Don’t be afraid to reach out to others for help if you’re running low on ideas for your company.
You can take a bit of your tax refund and invest in a series of training seminars for yourself and your employees. The concepts they learn not only will make their jobs more comfortable but also will expand their skills and conception of their work and industry. In this way, you can create a workplace of high-quality and constantly adapting individuals who are ready to succeed in every way.
Just as importantly, you can expand your understanding in ways that make executing your services even more accessible. For example, you can learn everything you want to know about accounting, financing, management, and various types of leadership concepts. Though you may not retain all of this information, what you do remember will almost certainly help change the way you approach your company and its work. Just as important, it can keep your business competitive in a rapidly changing environment.
By Laura Gayle, Business Woman Guide
February 18th, 2020
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