Is your business “leaking money”? Do you even know? It is absolutely necessary that you avoid the following mistakes in order to run a successful small business.
- not balancing your bank statements monthly
- letting customers pay with 30, 45, or 60 day terms
- not following up to see if invoices are received and scheduled to be paid
- not checking invoices and vendor statements against products received
- not balancing checks against invoices
- not tracking cost of goods sold
- not keeping the right levels of inventory necessary to meet customer demands
- over paying on bank fees
- capitalizing research and development instead of expensing it this year
- not keeping track of all your business expenses
All of these areas in combination with strict budgeting and forecasting processes are crucial to assuring a smooth flow of a company’s finances.