The Big Mistakes That Will See Your Business Finances Tumbling Out Of Control

Managing your businesses cash effectively

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You don’t need us to tell you how important your money is to your business. It keeps the lights on and the wheels turning. Yet, there are business owners who take so many risks their money without noticing that it boggles the mind. So we’re going to take a quick look at some of the most important parts of keeping control of your finances.

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Don’t lose employees

The human element of the business is going to be some of the most expensive. But what’s a lot more expensive that having employees is losing them. The real cost of that is not just to morale and office environment. It’s also the sheer monetary cost of the hiring process. You have advertisements to put out or recruitment agencies to contact. The cost of keeping a temp worker in the midst of the process. Then the cost it takes to train new staff as well. Retaining your staff isn’t just the mark of a good boss, it’s common business sense.

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Don’t keep too many employees either

We’ve already stated how hiring can be expensive. To add the cherry on top, some businesses will hire employees for tasks they shouldn’t even be hiring from. Look at the role you need fit. Is it temporary? Does it require already established expertise? Can you afford an employee for that role? It can cheaper to outsource. It can also help you fill the roles that don’t need someone on a full-time basis. Few businesses need to hire a permanent web designer, for instance.

Don’t be lazy with your accounting

If you want to know what it’s like to have your money trickle into nothingness, then take your eye off it. Poor accounting is the result of money troubles for many businesses. It just comes down to laziness or ignorance. Use an accounting checklist to make sure that you’re doing every task you should be doing. Use a calendar to give yourself set times to tackle it so you’re not missing anything or rushing before deadlines. If you’re not entirely sure what should be a part of your accounting duties, consider learning from advisors like Howlader & Co.

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Don’t get sued

You would think this is obvious. But for some reason, business owners keep getting themselves into positions where they get sued. They don’t pay the right amount of tax for their business structure. They don’t make a health & safety plan. Most importantly, they don’t have a code of conduct for dealing with their employees. You can’t say whether or not a member of staff might start a conflict with the business. But with a step as simple as an arbitration clause, you can at least avoid it going to a lawsuit.

We hope we’ve given you a good idea of what behaviour to avoid. Whatever you do, don’t make any of these mistakes. These are some of the most egregiously preventable ways of losing money. The solutions are always just so simple, at the same time.

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