Ways Your Business Might Be Literally Giving Away Money

Although they might not have a lot of spare money to throw around, to begin with, small businesses can end up losing a fortune if they don’t keep a close eye on their finances. Here are some of the ways your business might be giving away money that it should be keeping.

Not keeping track of the “small” costs

If you think that there is any money disappearing from your business, then the very first thing you should do is improve your financial reporting and planning. Hiring a bookkeeper to do that job can be worthwhile, but one of the best ways to keep things organised is to digitise them with business accounting software. This streamlines the processes of updating and checking your finances so you always keep a track of what you’re spending and where, as well as where your money is coming from, as well.

Staying subscribed to services you don’t use

There are plenty of services that might catch your eye, whether it’s a software suite you can download, some kind of library you can subscribe to, or otherwise. If you put down your details for any recurring cost, make sure that you have it kept in a record somewhere that it will be visible. What’s more, ensure that you know when your payment is due. Failing to keep track of upcoming payments coming out can leave your business in hot water when you have to deal with other expenses so don’t get caught up.

Letting the taxman take too much

There’s money that you’re paying that maybe you shouldn’t be paying. But there’s also money that should be yours that you’re collecting. This includes the many tax exemptions and returns that you might get if you file your taxes a little more carefully. Most business owners are not tax experts, so you should consider working with taxation services. Not any old accountant will do, as bookkeepers do not often have the necessary training to be able to legally offer you advice on how to file your taxes. You could end up keeping a lot more money each year if you account for any exemptions and expenses as you should.

Not taking what you’re owed

If your business uses invoices to charge your clients or customers, then you had better be prepared to track them down. Late or missing invoices are a reality for any business that uses this method. However, it’s a reality that you can deal with. First of all, make sure that all your work contracts include a date for you to be paid by, as well as late payment fees to incentivise clients to stay current. Then, use invoicing software to track all of your invoices, to automatically send out reminders and to let you know when a payment is late on arrival.

Don’t take any cost for granted, and don’t forget about the money that should be rightfully yours. Hopefully, the tips above help you keep your business’s finances a little better managed and, therefore, a little healthier.