ENJOY THE HOLIDAYS WITH THESE BUDGETING TIPS FOR SMALL BUSINESS OWNERS
With the holiday season just around the corner, it’s the perfect time to prepare for joyful celebrations. The holidays can be an exciting time for many, but they can also bring on financial stress. That’s why we’ve put together some budgeting tips to help you make the most of the holidays while keeping your finances in check.
- Plan Your Budget Early. Start by setting a clear holiday budget. Consider your personal and business expenses, such as gifts, decorations, year-end bonuses, and staff parties, and ensure that you allocate funds for each category.
- Separate Business and Personal Finances. Maintain a clear distinction between your business and personal finances. Avoid dipping into your business accounts for personal holiday expenses. This should be done all year round, not just during the holiday season.
- Track Your Spending. Use budgeting apps or spreadsheets to monitor your holiday expenses in real time. Tracking your spending helps you stay accountable and make necessary adjustments. Look at your profit and loss for your business year round. It helps you prepare for year end bonuses and staff parties.
- Be Careful with Credit Cards. If a credit card is necessary to make purchases, use a card with lower interest rates and pay it off by the end of the month. This will give you peace of mind knowing that it can be paid off without worrying about accruing more debt.
- Set a Cap on Entertaining. If you’re hosting holiday parties or gatherings, set a reasonable budget for food and decorations.
- Early planning helps distribute expenses over several weeks or months.