For the last two weeks on Twitter, I have seen several W2 meme’s and people discussing what they will do once all their papers come in. There use to be a time when I got close to a thousand dollars back on my taxes. I was also a decade younger and naive to what handling my finances really meant. I wanted to share with my fellow business owners how they could maximize their tax refunds no matter the amount received.
What To Do With A $500 Tax Refund
This refund is smaller than most people receive but you can get so much done for your business if you maximize the above list. First and foremost put $100 into your business savings account for emergency and other potential resource reasons. Graphic design consist of Call To Action banners, business cards, visuals for social media, pamphlets, and much more. For the business development aspect of the list this would be for research development, workshops, seminars, books, and more. If you search in your city you can find a plethora of free workshops or ones under $50.
What To Do With A $1000 Tax Refund
A majority of this budget can go to product development. If you are a service business you can invest in an editor for your digital products, in addition to, a skilled graphic designer to help. Use funds to pay deposits on merchandise or other essentials.
If you apart of the financial demographic with a larger tax refund, I really can’t stress the importance of correctly planning everything out. After saving 10% of your refund, divide it into the areas listed above. Focusing on a website with graphics you love is a great area to hone in on. After that thinking about vendor opportunities. Not just for the next couple of months but for the rest of year. Christmas vendor opportunities start popping up in July. Saving $300 to spend on those options is a great move.
As you see there is a lot you can focus on once you receive your tax refund. It’s about being strategic and being accountable for every penny that you use for your business. Have you planned out how your going to maximize your tax refund for your small business?
Please note most people who are receiving higher tax refunds than others have a plethora of tax credits for their home, kids, and other miscellaneous reasons.
