Ebuzznet

Web Design and Blogging

  • HOME
  • SEO
  • TECH
    • ANDROID
  • BLOGGING
    • DEALS
    • REVIEWS
    • MAKE MONEY
  • WEB DESIGN
    • WORDPRESS
    • THEME
  • SOCIAL
    • FACEBOOK
    • TWITTER
    • LINKEDIN
  • BUSINESS
  • CONTACT

Don’t Have A Cash Flow Catastrophe!

Home > Small Business > Don’t Have A Cash Flow Catastrophe!

Although all businesses need to turn a profit, there are relatively few entrepreneurs out there who consider finances one of their strong points. While your head may be bursting with great ideas for your venture, all the numbers you need to keep track of can quickly become overwhelming. However, until you can comfortably hire people to do it for you, having some kind of handle on your finances is essential. Here are a few big cash flow mistakes all start-up owners need to avoid…

Don't Have A Cash Flow CatastropheImage Credit Public Domain Pictures

Procrastination

Most successful business owners know full well that procrastination is something that needs to be avoided at all costs. However, if you’ve spent years building up your work ethic for tasks dealing with a specific facet of your business, it can still be very difficult to knuckle down and deal with your pressing financial work. Unlike more creative aspects of running a business, putting off your accounts isn’t something that you can do forever. If you ignore the issue, it will only become bigger and bigger, and could possibly come back to bite you at a later date. Break everything you need to do into manageable, measurable tasks, put them on your calendar, and then get them done!

Underpaying Taxes

If you think that the only companies that don’t contribute the taxes they owe are multi-national giants with many offshore bank accounts, then you’re gravely mistaken. Due to small businesses often dealing in cash, and handling many transactions that aren’t reported to the IRS, a lot of them can wind up understating their revenues, overstating expenses, and ultimately underpaying their taxes. Most experienced tax attorneys will have had more than a few clients who were small business owners, and simply didn’t have the knowledge necessary to make sure they were paying all they were due. Don’t let yourself become one of these! Some underpayments from small businesses are totally inadvertent, and rooted in a genuine, practical difficulty of complying with the tax code. Some of it is intentional, with business owners figuring they’ll shrewdly get around the system. This means that high compliance costs often hurt responsible business owners more than irresponsible ones. Make sure you’re complying with the tax code, and not cooking up unnecessary problems for yourself.

Failing to Understand Seasonal Cash Flow

It’s absolutely essential for small business owners to understand seasonal cash flow. A lot of business models will have erratic spikes that may happen during the tax season, and turn into troughs through the summer. Countless entrepreneurs have had to learn the hard way that it’s necessary to maintain a pretty sizable cash cushion in order to see you through those months where things begin to slow down. You need to know your cash flow like the back of your hand. If you’re running a business-to-retailer company selling relatively cheap items, your sales cycle is probably going to be turning over quickly, meaning that having your cash cushion on hand is going to be fairly easy. However, for a lot of other B2B operations, having that safety net in the bank is pretty much an essential!

Filed Under: Small Business Tagged With: Cash

About the Author

Tech and Small Business Blogger

How to Update TomTom Map


Update TomTom Map for Free

Four rules for making the most of your Facebook page

FreeNet by Internet.org – A True Revolution

Staying Connected at Work

Experience at UniverCell

Design tips for an ecommerce Website

Apply These Well Known Web Models To See Success From Your Stock Trading Site

6 Cheap Ways to Promote a Small Business

How to Save Efficiently with Coupons in this Digital Age

Important Advice For Those Starting A Business From Home

Uncovering The Greatest Challenges Of The Oil Industry

Take These Steps To Ensure Business Success

7 Questions To Ask About Your IT Budget

How To Automate Your Business and Boost Efficiency

A Guide to Improving Your Website for the Customer

Beginner’s Guide To A Greener, Leaner Business

Top 4 Platforms For Your Blog

A NEW CDN WORTH YOUR CONSIDERATION: CDNSUN

Marketing Tips For Niche Businesses

Content Marketing & SEO, Let’s Make them Work Together!

Signs You’re Not Engaging Enough With Customers

5 Things Bloggers Can Do to Turn Their Blog into a Business

Factors To Consider Before Buying a Webhosting

BlogEngage – Having Your Say, Expanding Your Online Influence

Basic Guide To Link building

Mind-Reading Techniques Top Brands Use To Get Inside Customers’ Heads

Andy Android Emulator Review

Seven Tips For Speaking At Events

Can You Still Get a Loan if You Have a Bad Credit Score?

Top 5 Best Sources to find Ideas for your Next Blog Post

Discover The Secrets To The Biggest Returns From Social Media Marketing

Recipe Manager App for iOS Devices

Recipe Manager App for iOS Devices/

Ebuzznet, All Rights Reserved Web Design and Blogging | Free Blog Setup | Write for Ebuzznet | About Us | Contact Us | Privacy Policy | Disclaimer