Don’t Let Your Business Finances Come Crashing Down on You

In order to keep your business humming along, you need myriad of things to fall into place over time.

For one, making sure that your financial books are in order will always be a high priority. In the event this has not been the case up to now, definitely change that moving forward.

Secondly, always check to see that customer transactions are flowing smoothly. Although this sounds like a no-brainier, you’d be surprised how many business owners are not on top of problems such as fraud etc.

Lastly, be sure that you have hired an honest group of employees (in some cases you may just have an assistant or even be running a company on your own). For most businesses, however, they rely on their employees to come to work daily and not only do a good job, but an honest one at that.

So, are you pretty confident that your business finances are where they need to be moving forward?

Be on the Lookout for Financial Red Flags

So that your company doesn’t end up with financial problems, one or more of which may be too difficult to overcome, remember a few tips:

• Customers backing out on payments – In most cases, a customer will buy a product or service from you, and then proceed to pay for it. That payment can be in the form of cash, credit or debit card, a check etc. While the majority of transactions typically go off without a hitch, some customers end up backing out of their portion of the agreement. When a customer refuses to pay for something they purchased, who do you think gets stuck holding the goods? Yes, the business owner is that very individual. Whether the customer backed out because they have remorse from buying something with their credit card or they’re trying to commit fraud, the end result is the same for the business owner. He or she must try and get that payment so as not to run into a financial hole over time with missed payments. In the event you are looking to prevent chargebacks, do your best to notice any patterns building up over time. The occasional buyer remorse is one thing. When this becomes a regular pattern (especially with the same individuals), put a stop to it. Remember, it is your business that ultimately pays the price for this problems in more ways than one;
• Employees getting the better of you – Although you would like to think employee fraud is just a myth, it truly is not. Far too many business owners have suffered as the result of this problem over the years. While you may think your employees would never try and pull a fast one on you, think again. Look for telltale signs of possible employee fraud such as workers wanting to be in the office at times most no one is around, taking too much of an interest in company finances, and accountants being defensive over allowing others in the business to see the financial books. With all the negative fallout that can come from employee fraud, don’t leave yourself open to being the next victim.
  

Are You Spending Wisely?

• Be a thrifty spender – Finally, would you consider yourself wise when it comes to buying products and services to keep your business running smoothly? If not, now would be a good time to reassess how you go about purchasing such needs. When it comes to products, do your best to get good deals, notably when you buy items in bulk. From office paper to computers and more, always keep an eye out for deals. As for office services, also do your best to watch your dollars whenever possible. This can include what you pay for office rent, utilities etc. If there are opportunities to save money, do your best to capitalize on them.

When you do a good job managing your company’s finances, the world around you is less likely to come crashing down on you.