Money in the bank is everything to small businesses. If you don’t have enough cash, you will experience cash flow problems which could hold up some of your operations. You also need plenty of money to help the business grow and develop. Not only that, though, but it is also useful to have plenty in the bank if you ever hit a rocky patch.
But even though money it acutely important to small businesses, there are still some who aren’t looking after theirs as well as they should. Here are some of the ways various small businesses regularly put their money at risk.
Not Using an Accountant
Many business owners try and track their finances and file their own taxes on their own. This is especially the case for businesses that are only a couple of years’ old. However, if you don’t have any financial experience, this can very quickly go wrong. It is always best to have an accountant from the outset. That way, they can keep you on track, and you can be confident that you aren’t going to be fined for getting your taxes wrong!
Expecting Too Much Too Soon
Many business owners set their business expectations way too high. They overestimate how much they expect to make in their first few years in business. The worst bit is, they may not realize that they aren’t going to his this target until it is too late. And they may have already spent the money they thought they would earn. The best way to avoid this is to be realistic with your expectations. Set yourself reasonable business goals and targets that you know are manageable and attainable.
Not Protecting Payments
Some businesses do not use secure payment services on their online shops. A few aren’t even using secure card machines in their physical stores! It is crucial that you ensure all payments made to your company are entirely safe. Otherwise, you could end losing a lot of money to fraud. Be sure to use a payment service that protects your customer’s data as well as your own. If you think your business is particularly at risk, you can use high risk merchant accounts to keep your cash safe.
Not Cutting Office Costs
You don’t need to pay full price on everything you need in your office. There are a number of ways you can find cheap alternatives. For instance, you can save a lot of money on toner for your printer if you buy recycled cartridges. Check your Yellow Pages for your nearest recycled cartridges supplier. It is also possible to find free versions of the software and computer programs you use. Check sites like Download to see the types of free software on offer. You can also save money by buying second-hand office furniture, like desks and chairs. If you ever need to raise some cash quickly, think about selling your old equipment.
Once you start looking after your money correctly, you will find that you have fewer money worries!
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