Whether you’re a sole proprietor or heading a large company, business management is key to ensuring the long-term success of your venture, and proper investments can help it grow. When you need to focus on the essential, day-to-day operations of your enterprise, work with a professional accountant who understands you and your company’s needs.

For over 30 years, the professionals at Erie & Associates, P.C.  have provided excellent business consulting, tax preparation, and bookkeeping services to their clients throughout the Texarkana, TX, community.

If you’re a business owner and contemplating investments as they relate to your company, here are key things to know when moving forward:

• Investing Safely: Before making any investments, determine what level of risk you’re willing to accept financially. Always assess your personal finances and the dynamics of your business. A common lower risk strategy is to put your money in the bank, slowly building your reserve of cash over time within a checking account or certificate of deposit. Given the insurance levels and stability of banks, this is a safe option but with little chance of increasing returns in the future. 

• Moderate Risks: Investing conservatively means building and maintaining your portfolio's overall value by investing in mostly stable, fixed options. Balanced mutual funds, for example, are a common choice among retirees, as it enables you to gradually build your portfolio while avoiding most of the hazards of inflation and consistent dividends. Because it’s backed by guarantee through the federal government, government notes are a reliable, long-term option. They’re issued by both the U.S. government and Treasury, each with maturities from 10 to 30 years. High-grade corporate bonds are created by corporations seeking financing options. Stable, long-term investments are a dependable addition to a business management strategy.

• High Risk & Potential Returns: Some investments come with significant risk along with the potential for high returns and are recommended only to a more experienced investor. If it’s right for you, you can choose to invest in established corporations with long-term track records. Due to their past successes and level of branding, it can be a fruitful option but also comes with the risk of uncertainty that all companies face and typically with a somewhat higher price. Alternatively, you can focus on newer companies entering a high growth phase. Usually, the value of these businesses relies on new product launches, new brands, and innovative technology. Along with the potential of opportunity comes risk. 

Let the experienced, professional accountants and CPAs at Erie & Associates, P.C. help you create an investment and business management strategy to match your needs and long-term aspirations. To learn more, visit the website or inquire directly with an account by calling (903) 792-6651.