Is your company receiving a tax refund this year? If so, how much more money will it receive? It’s wonderful news. Now, how should you use that cash to get the most out of it for your company? Here are ten options to think about if you need some assistance determining where the money will have the greatest impact.
Upgrade your website: Does it load quickly enough? If a website takes longer than three seconds to load, users are 32% more likely to leave the site. Is it simple to use your website on a mobile device? The majority of online searches have been conducted on mobile devices rather than desktop computers for several years. Do you want to begin selling on the internet? Since your website is your storefront, it’s a smart idea to hire a web design company or expert to update and improve it.
Outsource: Outsourcing is a great option if you don’t want to hire permanent, full-time employees. Find independent contractors or freelancers to take on the tasks in your business that could benefit from outsourcing.
Donate to a charity Does your company already have a relationship with a charity or other non-profit organization? Give some of the wealth to your cause by giving money to it. Use your tax refund to get started volunteering with a local charity if you’ve always wanted to. Check with your accountant to see if the Tax Cuts and Jobs Act will affect how charitable donations are taxed.)
Make an investment in business connections Is networking a crucial step in your sales process? There are many advantages to using your refund from taxes to pay for membership in an industry association or networking group. You could also use the money to join a country club, golf club, or other leisure organization, where you could network with potential customers outside of work.
Start or add to your retirement account If you already have one, use your tax refund to contribute the maximum amount to it for 2021. Do you not yet have a retirement plan? Even for the smallest, one-person business, there are retirement plan options. Not only do they assist you in preparing for the future, but they also give you tax breaks.
Invest in your mind The business world is undergoing rapid change, and you will need new skills to keep up. Courses at community colleges or online courses like those offered by Coursera, Skillshare, or Udemy can be paid for with your tax refund. You can learn everything from management and leadership to finance and accounting.
Take care of yourself because you are the backbone of your business; however, if you are like the majority of entrepreneurs, you don’t have a lot of spare time for self-care. Invest in your health.
Spend your refund on a meal delivery plan, a personal trainer who will come to your house a few days a week, or another service that saves you time and gives you more energy to solve the problem.
Give yourself a treat: Use the money to go on a much-needed vacation or buy yourself an unforgettable experience. According to research conducted by a professor at Cornell University, experiences lead to longer-lasting happiness.) Get tickets, for instance, to a play, concert, or sporting event that you normally wouldn’t pay for.
Buy or lease brand-new equipment Investing in brand-new machinery, vehicles, or other business-essential equipment can have a significant impact on sales and productivity. Upgrading office equipment like printers and copiers can really make your workflow more efficient and make your employees more effective.
Next year, hire a tax professional Was your tax refund substantial? Even though receiving that check might feel good, it’s not so great: This indicates that you overpaid your taxes throughout the year and let Uncle Sam use your funds rather than using them yourself.