The major financial mistakes your company makes can be solved simply with greater control of money. Find out what they are and how to resolve this situation.
Keeping your accounts up to date becomes a difficult task when the major financial mistakes your company makes are not known. It is necessary to break them down to balance finances and prevent the organization from going into debt - and even bankruptcy.
Manage is the keyword to start having a control over the inputs and outputs. Knowing about bills and taking preventive measures in relation to money will help avoid problems. O use of technology in financial control is something that, if well used, can help you not to make any of these mistakes. See more!
Major Financial Mistakes Your Company Commits
Know the main financial mistakes that your company makes and that can be tackled with simple measures and control.
Mix personal and company accounts
Especially the micro and small companies usually do not separate the money that is of the company and what is destined to its owners and collaborators. When the bills are paid the values are mixed, not allowing to know what was the profit, salary paid and others.
Do not use business management worksheets
As business spreadsheets are important management tools because they allow you to compile all your financial information and keep track of them.
When elaborated with all the necessary fields, the financial management becomes complete, the expenses, revenues and profits are known and one can do management about them and carry out the planning of the organization without there being financial losses.
Do not use cash flow
O cash flow allows you to make a projection of all the income and expenses of a certain period and thus to plan the future. Another of its functions is to check the financial history and to identify if the projected one was in agreement with what happened.
This tool also allows you to know a little more about customers, such as those with a good payment history and use that data strategically for new business and partnerships.
Stored merchandise has a cost to the company, as it has to be stored and this can generate a still investment. On the other hand, if managed well it is possible to guarantee a good turnover without having additional costs and negotiate values of purchase in greater quantity and obtain discounts.
Registering the goods receipts and exits allows a balance of the products, guaranteeing a quantity to supply the demand without it becoming obsolete.
Calculate the wrong sales price
One of the main financial mistakes your company makes may be in the sales calculation of products. This usually occurs when you do not know the costs and expenses that affect each item.
This ignorance results in low profit margins or even losses in giving discounts above what would be possible or lowering the price in order to take advantages over competitors. To ensure correct pricing it is necessary to use financial management worksheets, know the process and plan.
Many of the major financial mistakes your company makes are related to the lack of management and control tools like spreadsheets and specific software. Reviewing the tools you use can minimize and even eliminate this problem.
By Jeniffer Elaina, from Home