I have too much profit, what can I do about it?
You can link directly to this article using the short URL http://bit.ly/dacReo
A welcome dilemma indeed!
This is a fantastic question and we hear it quite often “I have too much profit, what can I do about it?”
It is however a coded version of something else, and it can mean either:
- I don’t have enough profit. I know that, because I have drawn all the money out of my business and I have nothing left to pay my tax bill.
- I have ridiculously large sums of money floating around, even after paying my tax bills, and I’m in danger of taking up a ludicrously expensive hobby!
Depending on which statement is the closest to your true circumstances, then the solution is either:
- Make more profit and manage your tax reserve on a weekly or monthly basis. In the short term, borrow some money so that you can pay your tax bill. See Zopa for more details of how you can borrow modest amounts of cash at reasonable rates.
- Become a business angel. Invest! There are entry level ways of doing this, even if the pool of cash is as low as £500. See Zopa for more details of how you can become an ultra cautious business angel.
If you need to make more profit, you need good business advice. Call us and we’ll put you in touch with an excellent business coach. Or start looking at Don’t Read My Blog.
If you have a quarter of a million to spare and want to invest, call us and we can put you in touch with the professionals in this field too!
Posted on 5 Mar 2010 by The Proactive Accountant Dot Com
Tags: business angel, profit, tax bill, tax reserve, zopa
