An unexpected tax refund can make it possible to invest in your company in ways you might not have been able to otherwise. However, creating and prioritizing a list of options can be challenging. We would like to help by offering 10 possible suggestions for how to spend your tax refund well. Ranking your list in order of importance is entirely up to you.
Options for Spending Your Tax Refund
While you will probably think of several of your own ideas, here are 10 to help get the brainstorming session started.
If you don’t feel ready to take on permanent employees, hiring contractors makes an excellent alternative. Hire someone who specializes in services, such as accounting or web design, and save money by just paying the project fee.
Give your website a makeover
An updated website is especially important if your current website looks outdated or runs at a slow speed. It is also important to optimize for mobile viewing, since that is where the majority of Internet browsing occurs.
Join an industry association
Increasing your networking efforts is always a good idea to help grow your business. Using part of your refund to join a trade group is the perfect way to get your business additional exposure.
Make a charitable donation
Does your company support a charitable organization? If so, sharing some of your tax refund will help it better reach its goals and potentially provide you with a tax write-off for next year.
Take some online courses
You may want to update your industry skills, with no additional time to dedicate towards taking multiple college classes. Investing in a single online course that you can complete on your own timetable can reap rewards, although it might be at a slower pace.
Put the refund in your retirement savings account
This idea might not seem as exciting as the rest, but you will thank yourself later for saving. If you don’t yet have a retirement savings account, consider using your tax refund to open one.
Work less, play more
The fact that you received a business tax refund at all testifies to how hard you work all year long. If you are feeling like you need a break, consider taking a vacation, or just some time to yourself to regroup.
Focus on your health
It’s not uncommon for entrepreneurs to work so hard that they forget about their health. With the extra money from your tax refund, you could hire a personal trainer or sign up for a food delivery service to ensure that you nourish your body, while working hard.
Hire a tax advisor
While getting a tax refund is exciting, it only means that you have overpaid the IRS and you’re getting your own money back. Next year, work with a tax advisor so you don’t pay more than necessary.
Invest in new equipment
It’s hard to grow as a business when you and your employees use outdated equipment. If you’re not ready for the commitment of purchasing a new piece outright, leasing it can make an attractive alternative.
Need more tax planning advice? Don’t hesitate to schedule an appointment with Doerhoff & Associates. We know you can use all the help you can get to run your small business successfully, and we are here for you. We strive to provide what you really want and need – a unique and customized set of services to fill the gap and support you, the business owner.