Three Financing Mistakes All Business Owners Should Avoid
It is important that every business, no matter what size, is able to respond to its financial position at any time. As you know, the best organizations are flexible and easily adaptable to change. Throughout the years, Atlas Financial
has had the opportunity to correct many of the simple financing mistakes of our customers, thereby assisting them in the right direction towards growth and profitability. Take note of some these common business financing mistakes to ensure that your company is in the best position to grow.
1. Irregular Bookkeeping
It is critical to take time out of your weekly or monthly schedule to make sure your financial records are up-to-date and are being inputted accurately into your bookkeeping system. Inaccurate record keeping can create issues relating to cash flow, planning, and business decision making. Something as simple as choosing the right accounting software
can help streamline your business' books.
2. Unrealistic Cash Flow and Budget Predictions
Having an unrealistic cash flow and budget will keep you from understanding where your business is truly heading. By making educated guesses as to what your cash flow will be, you can prepare your business for the unexpected. Look at what your business did last year around the same month to get an idea of what sales you should expect to see. You should predict both best-case and
worst-case business sales and expenditures. It’s critical to prepare an action plan if you do encounter a worse case financial scenario.
3. Insufficient Accounts Receivables Policy
The longer debt goes uncollected, the less likely it is to ever be recovered. It is important to establish a strict credit policy, so that your cash flow isn’t negatively impacted. A few best practices include: sending invoices out on time and reinforcing payment terms on your contracts, website, and invoices. With a little diligence and some time invested in these activities you will see a return that can greatly benefit your business.
Atlas Financial hopes this blog post is beneficial to you and your business. Learn more about our many financing options, such as accounts receivable financing