When starting out, it's always a good idea to keep your eye on the prize, but to ensure you reach that end goal you want to know avoid the pitfalls of overspending. When you have a great new venture, life is exciting and we're a jam packed with gusto, but sometime that causes us to loose sight of the realities at hand. One of the major realities that CANNOT be overlooked is calculating costs, because it will burden your mind with financial woes, when really your mind should be positioned with thoughts on how to grow your new venture.
Calculating Costs, be Realistic:
- Although starting up new ventures involves much spending, which is exciting and can sometimes seem overwhelming but exciting at the same time, when making purchases, research what you need and ensure your stretch your dollar. New doesn't mean best for you, gently used and refurbished shouldn't scare you especially when merchant warranties are included in the purchase price.
- Costs can add up quickly, although you can't always control it, when shopping for things like the office ensure you set a fixed date to get supplies regularly consumed. This will let you keep an eye on supply usage and avoid you running to the store and picking up things not previously budgeted for.
Track Spending, Organize:
- Get a receipt at all times or at least a written account of your spending, this is essential because it helps you organize and justify where your dollars go. As well when when filing your taxes you will have an easier time recuperating the taxes you spent, claim your costs and get any refunds/returns you might qualify for.
- You don't want to spend on things you hadn't accounted for, but the reality is that you can't account for all the costs that may arise, that's why having a miscellaneous fund, often referred to as petty cash is handy. It's your way of keeping a cushion for the unknown, but be sure to collect and receipts for all miscellaneous purchases, soon you will have less surprise expenses. .
- When starting out we often don't have the luxury to hire accountants to watch our every dollar. Luckily we're in an age where software are plentiful, affordable and efficient. Having all your cost organized at the end of a fiscal year is truly priceless, accounting software reduces the stress of cost calculations and are simple enough for the everyday person to use.
*Rates and conditions on all financial products, change frequently so ensure you have a contact on hand, (that you are comfortable with) of the financial institution you do business with so you can keep up to date and have your questions answered when they arise.
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