Paying taxes can be somewhat miserable for most American small businesses, but right after you go through that whole tax paying process, you can experience one of the most exhilarating things ever, getting your tax refund back. What a happy feeling it is to get a chunk of money once a year, know that you’ve earned it, and know that it’s yours to spend or save.
You can use that refund to get some work done around the office, or pay a delinquent bill. There are also many constructive uses for your tax refund as well. If you are unsure how to spend your refund, then you should try to do something constructive with it, rather than wasting it on junk and fluff items.
You can choose to invest your refund in stocks or bonds. The best way to go about this is to select a stable mutual fund with a good reputation, from a solid company. You can dip into the active market, but there’s a chance you can lose all your money. The stock market moves a lot like gambling, so if you don’t know what you’re doing, it’s best to steer clear of it.
Another smart thing to do is to put your refund away in savings. Just put it in an interest earning savings account with a good bank, and let it earn money for you.
You can also invest in the bank of reciprocity by giving back to your community. This is just as good as buying publicity if your a small business. You can send out press releases, and have your activity covered in the local paper. Many folks believe that what goes around comes around. So if you do good, good will come back to you.
The best thing to do when you get your refund is to avoid impulse spending with your money. Even if you would like to spend the money, just hold it for one to three months before you spend any of it. This will allow you to make your intentions clear, maybe streamline your shopping list, or even window shop around some for the best deals.