5 Serious Financial Mistakes Your Company Makes (And You Don't Know)

The main financial mistakes of your company can be solved simply with more money control. Find out what they are and how to solve this situation.

Keeping your accounts up to date becomes a difficult task when you don't know the company's main financial mistakes. It is necessary to bring them down to balance finances and prevent the organization from getting into debt - and even bankruptcy.

Manage is the key word to start having control over inputs and outputs. Knowing your bills and taking preventative measures in relation to money will help you avoid problems. the use of technology in financial control is something that, if used well, can help you not make any of these mistakes. See more!

Main financial mistakes your company makes

Know the main financial errors that your company makes and that can be addressed with simple measures and controls.

Mix personal and business accounts

Especially micro and small businesses usually do not separate the money that belongs to the company and what is destined for its owners and collaborators. When the bills are paid the values??are mixed, not allowing to know what the profit was, the salary paid and others.

Do not use worksheets for business management

As worksheets are important Business management tools that allow you to fill all the financial information and track.

When it is processed with all the necessary fields, the financial management becomes complete, the expenses, revenues and profits are known and one can manage them and carry out the planning of the organization without 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 therefore to plan the future. Another of its functions is to check the financial history and identify whether the projection 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 this data strategically for new businesses and partnerships.

Uncontrolled action

The stored goods have a cost for the company, since they must be stored and this can generate a stable investment. On the other hand, if managed well it is possible to guarantee a good replacement without additional costs and negotiate the purchase values??in greater quantities and obtain discounts.

The registration of goods receipts and exits allows a balance of the products, guaranteeing a quantity to satisfy the demand without it becoming obsolete.

Calculate the wrong sale price

One of your company's major financial mistakes could be in calculating product sales. This usually occurs when the costs and expenses of each item are unknown.

This ignorance translates into low profit margins or even losses in giving discounts higher than what would be possible or decreasing the price in order to take advantage of competitors. To ensure correct prices you need to use financial management worksheets, know the process and plan.

Many of your company's major financial errors are related to the lack of management and control tools such as spreadsheets and specific software. By reviewing the tools you use you can minimize and even eliminate this problem.

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