How to Better Keep Track of Small Business Expenses in the New Year

Do businesses actually have a credit score? The short answer is — yes. And, these measures of financial responsibility are calculated much in the same way individual credit worthiness is determined. Although it’s not something that’s widely discussed or known about in the consumer world, businesses do have credit histories, and therefore detailed reports which give them scores. Read on to learn the basics about business credit scores and what you need to know. How Business Credit Scores are Calculated As mentioned above, a business credit score is measured very similar to the way individual scores are calculated. Meaning, the length of credit history, types of credit used, payment history, debts owed, and other factors. Unsurprisingly, the better a business handles its financials, the better score it earns. Businesses of all sizes may need credit. A carpenter with no employees may want to borrow money to buy equipment. A marketing professional with a few employees may be ready to purchase furniture and computers for a new office. A salon owner with subcontractors but no employees may want to buy, rather than rent, commercial property. Any type of business could benefit from a business credit card. —US News and World Report Of course, there are some differences, one of the most minor being the scores themselves. While individual credit scores range from a low of 300 to a high of 850, business scores range from 0 to 100, with 100 being the highest. Additionally, business credit scoring services use different models in order to determine the creditworthiness of companies. Also, instead of there being three main credit reporting bureaus for individuals, Equifax, Experian, and TransUnion, there are two principal business credit scoring entities: Dun & Bradstreet and Experian. How to Improve a Business’ Credit Score Since business credit scores rely on many of the same elements as individual consumers, nearly the same factors are used to assign a credit worthiness score. So, in order to maintain or improve a business’s credit score, companies must do the following: Keep debts manageable. Opening too many accounts and taking on large amounts of debt will only increase your financial risk. This not only hurts your business’s credit worthiness, it also puts a lot of strain on you as the owner. This is why it’s best to keep your credit accounts to a minimum and pay off as much debt as possible. Utilize different types of credit. Credit mix is also a consideration, meaning businesses having different types of credit accounts. While it’s advantageous to have various types of credit, it is equally advantageous to keep these to a minimum so you’re able to pay what’s owed in a timely manner. For instance, you might finance or lease vehicles through your business, have a business credit card, and maintain vendor credit accounts. All of these will go into determining your business’s creditworthiness. Be vigilant with your personal credit. One misnomer that entrepreneurs have about business credit is that it’s somehow separate from their personal credit and/or financial responsibilities. However, this is completely false. Business credit accounts almost always require an individual or personal guarantee. This of course means that if the business defaults on a line of credit, you are personally responsible for that particular debt. Moreover, business credit is partially scored on your personal credit, so it’s best to maintain a good personal score for the benefit of your company’s creditworthiness. What other suggestions do you have about maintaining a business’ credit score? Please take a moment to share your thoughts and experiences so others can benefit from your perspective! Interested in learning more about business? Then just visit Waters Business Consulting Group.

Elon Musk’s acquisition of Twitter is full of drama. It’s one of the biggest deals in the world of social media. What makes it so fascinating is the many bomb drops that continue to detonate, drawing huge public attention. Among the latest is about the actual number of bots on the microblog. Musk threatened to walk away if the company can’t provide proof positive about the percentage of fake accounts, citing his offer was predicated on official SEC filings. Turns out, there might be a lot Twitter is hiding from the public and this is a prime teaching example. Why Businesses should Never Mislead the Public or Consumers As a business owner, you should be aware of the consequences of misleading the public. When businesses knowingly deceive their consumers, it can lead to disastrous results. Not only can it ruin your reputation and cost you customers, but it can also lead to legal trouble. In this article, we will discuss the consequences of misleading the public and why honesty is always the best policy. One of the most influential propositions in marketing is that customer satisfaction begets loyalty, and loyalty begets profits. Why, then, do so many companies infuriate their customers by binding them with contracts, bleeding them with fees, confounding them with fine print, and otherwise penalizing them for their business? Because, unfortunately, it pays. Companies have found that confused and ill-informed customers, who often end up making poor purchasing decisions, can be highly profitable indeed. —Harvard Business Review Deceptive advertising is one of the most common ways that businesses mislead the public. This can take many forms, such as false claims about a product’s effectiveness, exaggerated claims about sales figures, or even making false promises about what a product can do. In some cases, businesses may even resort to fraudulent activities, such as selling counterfeit products or engaging in bait-and-switch schemes. Consumers rely on businesses to be truthful about their products and services. When businesses engage in deceptive practices, it erodes consumer trust and confidence. This can lead to lost business and customers turning to your competitors. In addition, if you are caught deceiving consumers, you could face legal action from state attorneys general or the Federal Trade Commission. The bottom line is that honesty is the best policy when it comes to running a business. Misleading the public may seem like a quick and easy way to make a profit, but in the long run, it will only lead to problems. Be truthful about your products and services, and you will build trust with your customers that will last for years to come. Have you ever been misled by a business? How did it make you feel? Share your story in the comments below. And if you’re a business owner, remember – always be honest with your customers! It’s the best policy for ensuring long-term success. Interested in learning more about business? Then just visit Waters Business Consulting Group.

Small business owners are often in a unique position to help their employees during tough economic times. They may be able to offer more work hours, give gas and grocery gift cards, and allow schedule flexibility for side gigs. In this blog post, we will discuss some of the ways small business owners can help their employees out during these difficult times. How Helping Your Employees Benefits Your Small Business When you help your small business’ employees, they are not only appreciative but often become more loyal. They’ll also be more productive and deliver a higher quality of work, as well. Plus, happy employees are far less likely to leave, meaning you won’t have to find replacements and spend extra time training new employees. During challenging economic times such as a recession, many companies struggle to stay afloat while the employees worry about losing their jobs. Management has the tough task of finding ways to keep employees loyal and productive while assuring them that they can survive the challenging period. —Houston Chronicle Small Business All this is to say that your small business’ employees are a true asset. They are an investment in your company and usually, bring a healthy return on investment. Smart, long-term business owners realize this and therefore do anything and everything they can to help their employees when economic times get tough. 3 Ways Small Business Owners can Help Employees Out during Tough Economic Times Difficult economic times put far more stress and pressure on hourly employees than salaried executives. If your business is in the position to give employees a little help, it will go a long way. Here are three ways small business owners can help their workers through trying economic times: Offer more work hours. Offering more work hours is one way small business owners can help their employees during tough economic times. This can help employees make ends meet and keep them from having to find another job. Give gas and grocery gift cards. Giving gas and grocery gift cards is another way small business owners can help their employees during tough economic times. This can help employees with their daily expenses and allow them to save money on groceries and commutes. Allow schedule flexibility for side gigs. Allowing schedule flexibility for side gigs is another way small business owners can help their employees during tough economic times. This can help employees earn extra income and provide them with better financial stability. These are just a few of the ways small business owners can help their employees during tough economic times. If you are a small business owner, consider how you can help your employees during these difficult times. Your employees will appreciate your support. Do you have any other suggestions for how small business owners can help their employees during tough economic times? Share your thoughts in the comments below. We would love to hear from you! Interested in learning more about business? Then just visit Waters Business Consulting Group.