COACHING
HOW DO YOY CALCULATE YOUR NET WORTH?
At the end of the week or at the end of the month, start by creating a table with all your assets in one row and your debts in another row. When you have calculated the total of each row, apply the following formula: Assets - Debts = Net worth
If your net worth is negative look at your liabilities and your equity. Make sure you are not running a lot of personal expenses thru the business.
DO YOU KNOW WHAT KPI's ARE?
KPI is short for Key Performance Indicators and they are, the financial goals of a business and, the quantifiable way to track its success. For example, if your business has problems with cash flow, you can use the operating cash flow metric of KPI, to evaluate and know the amount of money that the company is producing. In turn, you can then determine if there is enough cash flow to cover monthly expenses and take action if there is not.
THREE TIPS ON HOW SAVE ON TAXES
1. Deduct your expenses: Is your home also your office? You can deduct insurance, repairs and utilities after determining which part of the house is also your workspace. Likewise, you can deduct expenses related to your car and transportation.
2. More employees: Not only helps your business grow but it also lowers your taxable income.
3. Keep track of your receipts: It can be hard to record all of them immediately but keeping your receipts organized can go a long way since many of them can help you lower your taxable income. Make sure to keep them filed
SETTING A MONTHLY SALARY WILL IT HELP ME SAVE ON TAXES?
Starting your business under the S Corporation business structure o changing your current business structure to it , will give you the chance to save money when filing for your taxes. You will need to take into account that your salary must be realistic, and based on your position and obligations in the business. If the IRS considers that the salary is not similar to those in your same market, you could face penalties.