Yes you might have enough in there to make the purchase right now, but what about the stuff you want to buy next month? Or the bills that will be coming out next week?
Write down at what sales you’re expecting to make. Then take a look at what bills and purchases you need to pay for. Take those two figures away from each other and you’ll see what spare money you have left over in your business.
If you don’t look at your future income and spending, you could be spending money that you’ll need next week or next month to cover a bill. So just looking at your bank account doen’t give you enough information to make a proper informed decision.
Ell Evan Bookkeeping are not Tax Advisors and so our advice and suggestions on the application of tax rules cannot be construed as tax advice.
