May 17, 2021
When the fiscal year is coming to an end, and you find that you are left with a surplus of cash, you should pat yourself on the back. This means that you have successfully kept spending manageably low without compromising on the quality of service that your company provides.
It also means that you now have a decision to make regarding how that surplus will be used. Several different options are available to you, but the route that you choose to take will primarily be dependent on the state of your business at this time.
You might take the opportunity to give your business the operational side some much-needed TLC, or you could look for investment opportunities that would be low-risk and beneficial to your bottom line.
Essentially, you want to take this time to evaluate your business to see where your surplus would be put to the best use possible. With that in mind, here are three suggestions as to how you might choose to spend your surplus that can result in the best outcome for your business.
1. Internal Upgrades
It is only natural for your offices and equipment to undergo normal wear and tear throughout the course of standard business. Over time, though, that wear and tear can become problematic and even inhibit you and your team from doing your jobs to the best of your ability.
For instance, if it has been some time since you have invested in upgrading your computers and other office equipment, you might wish to use your surplus in doing so. New computers and the like can help improve productivity and provide your workers with the tools they need to succeed.
It is a good idea to get a quote on new professional office equipment from a reliable IT support group specializing in outfitting businesses with the tech they need.
2. Save It
If you have evaluated your operations and have found that no serious upgrades are necessary at this time, you might wish to put your surplus cash into savings simply. It is always a good idea to have a rainy-day fund set up for your small business if you run into issues down the line.
Moreover, you might very well be able to find a savings account that offers a decent enough interest rate. This will allow that surplus to grow over time, giving you even more funds to work with down the line.
Depending on the size of your surplus, you might now be able to afford to take some serious steps towards expanding your business at this time. Whether you have been contemplating expanding your product line or looking to break into a new market, your surplus can be a helpful means in achieving these goals.
Consult with your accountant to see what sort of risks would be involved in taking such a step. However, if you have been awaiting the funds required to expand, now might be the right time to do so.