I recently had a client ask me what should she focus on first, taxes, retirement or paying down a debt. This is late October… While paying down debt was first and foremost in her mind. I helped her to look farther into the future. While paying down the debt will have short term benefits, the long term benefits of focusing on the retirement investment has some immediate benefits and long term benefits. Paying into the retirement will lower tax obligations in the immediate future. Paying into the retirement has long term benefits that will help her have peace of mind for the future. I explained that we will focus on these two goals and also keep the debt on the radar. In addition, not increasing the debt was apart of our goal setting.
Setting goals as a small business owner is very important with regards to the cash flow within the business. When you are running a business, there are many competing priorities that need to be handled. Having someone help you set these goals and keep you accountable is something that every small business owner needs.