Richard Belott is a Chatham, New Jersey, accountant and tax preparer who, alongside his wife Linda, leads Belott & Company CPAs, LLC. One area in which Richard Belott has in-depth knowledge is defining optimal financial strategies for business owners.
Essential for any small or growing business is taking a close look at the service or product being offered and associated expenses. This includes both the personal cost of time and effort put in and hard costs that range from employee salaries to office or warehouse rent. With the expenses of maintaining computer systems being another significant part of the equation, what is left over (after taxes) represents the amount that can be safely reinvested into growing the company.
Many growth companies find it impossible to continue, much less expand, on present earnings alone. At some point, the business will likely need to explore credit options. Beyond consumer and business-linked credit cards, consider forging a strong relationship with a local financial institution that can arrange a small business line of credit or loan.
Keep in mind that qualifying for a substantial loan in today’s competitive financing environment requires accurately balancing the books and making sure that there are no blemishes or question marks on the financial record. This requires closing the books on a monthly basis such that your balance sheet accurately defines how much the business is actually worth. With this information, and a compelling growth prospectus in hand, it should be possible to secure a loan at a reasonable rate.
