5 Critical situations that can affect your company

Businesses have their ups and downs. We move from an economic summer to an economic winter and ride out the cycles.

You may be wondering:

  • How do I avoid nasty financial surprises?
  • How do I measure my company’s performance?

It all starts by making sure that you have all your financials up to date.

Having control on your current financial situation is key, it’s the only way to plan ahead, forecast and avoid any of the following possible situations:  

Theft & Fraud

Discovering that your employees are stealing from you or misplacing your assets could not only be disappointing but also the fact that you lost any valuable amount of money and then having to proceed with a lawsuit could be terrible.

Cash flow problems & poor collections.

If you have the feeling that money is becoming an issue, then you should rapidly take a look at your expenses and at your outgoing cash flow.

You may need to start reviewing your business finances every week and think more seriously about your incoming cash flow. Is your collection department sending Invoices and collecting in an effective way? Is your sales team or front line doing their utmost?

High taxes and fines for paying late

This is just one of those things we can’t avoid, but we can manage to do it in the most efficient way for our company and also for our employees. If we have our numbers up to date faster, we can deal with mistakes on time and then we can prepare to pay our taxes accurately and avoid any penalties.

Poor Management Decisions

Accepting responsibility for poor management decisions is one of the most difficult things for every business owner or manager. Dealing with your own guilt and at the same time try to recover from any loss is challenging.  Some of us tend to stay in the comfort zone of the known instead of being pro-active and looking for innovation.

Business Failure

When we talk about business failure it’s a small amount of businesses that raise again from the ashes. If it comes to this point it’s because you have overseen all the previous signs of help that your company have sent to you.

Your company’s future also depends on keeping your books up-to-date and accurate. It gives you the opportunity to have a better overview on your company’s cash flow and financial situation. Also it enables you to negotiate more efficiently with your suppliers and get the best interest rates from your lenders.

Here's how you can improve

  • If you have more than 50 transactions a month, Automate the process with EasyBankImport.
  • Import your bank statements into your administration at least weekly.
  • Have your previous month's administration completely done within one week of month's close.
  • Review your Profit & Loss statement weekly, monthly, quarterly and yearly and identify areas that need your attention quickly.
  • Review your numbers with your accountant monthly to avoid nasty tax surprises.

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