Money Talk: Financial tips for businesses
Many businesses are currently struggling due to the current economic climate from the impact of COVID-19. Experts say having a financial plan is crucial.
Scott Sampeer, a certified financial planner with Northwestern Mutual, shares financial tips for businesses.
Sampeer recommends businesses set aside an emergency fund of three to six months expenses. Keeping this fund in an interest bearing checking or savings account can help soften any unforeseen obstacles for the business. He also says meticulously watching cash flow can help the business save money.
Sampeer says paying and preparing for your taxes is a huge part of being a successful business owner. He recommends saving 30-40% of the year-round income for taxes. By seeking a professional will help make sure deductions are set up properly.
Sampeer also says to continue to plan for retirement. Regardless of how close you are, Sampeer recommends making contributions to your future even in uncertain times and business owners have many different plan options. These include 401k, SIMPLE or SEP IRA. By making contributions each pay check, Sampeers says the automatic annual percentage will increase.
Sampeer says getting your finances in shape, just like working out, can take a bit of time. Knowing your overall financial plan is in order will allow you to focus on what you do best, growing your business.
Reach out to Scott Sampeer via
or telephone at 906-629-6007 for more information.