Cash flow improvement is a hot issue for small businesses; in many businesses, it seems like there is never enough cash when you need it. The last thing a business owner wants is to reduce their cash balance unnecessarily. To help you preserve or increase your cash, here are five cash management leaks to avoid. 1. Bloated Bank Fees Some banks are more business-friendly than others. We recommend you assess the fees you are currently being charged to see if you can discontinue any unnecessary services. Could you maintain a cash balance to avoid monthly fees? Are you being charged online banking fees and bill pay fees, and are these still necessary? Are you being charged for a high volume of transactions or cash drawer services, and are these competitive with other banks? Banks, including national brands, that have not kept up with technology and have not automated a significant amount of their transactions are inefficient and must charge higher fees to cover their processing costs. If your accounts are located at one of these costlier banks, you do have a choice. 2. Overtaxed Are you sure that you are paying the lowest amount of taxes you legally owe? There [...]
10 Things You Might Not Think to Delegate But Should
Just about everyone suffers from a lack of time to do all the things they want, or even need, to do in their business. One of the solutions to freeing up your time is to delegate. The question is, what are the most effective tasks to delegate? Here are ten ideas for you to consider (or reconsider) to free up your valuable time for more important things. 1. Social Media We didn’t even have social media ten years ago, but now that we do, it can be a major investment in time. Some companies ignore it completely, not wanting to open that can of worms, but done well, social media can have a great payback. Rather than ignore it or take up your important time, turn it over to an intern or recent college grad who probably knows more about it anyway! 2. Grocery shopping You might think this is only for rich people, but it’s simply not true and very cost-effective. Grocery shopping is a personal task, but time doesn’t distinguish between work and personal; it keeps marching on. Set up a grocery list and find someone who wants to work part-time (your housekeeper might know someone). You’ll be [...]
Five Ways to Protect your Cash
As entrepreneurs, we work hard for our money, and the last thing we need is to have it disappear due to fraud, hackers, or identity theft. Some people have called 2013 the year of the hacker, which is worrisome. But you’re far more likely to experience risks with disgruntled or financially desperate employees and contractors. Mistakes happen, too, and when they do it can be costly to get them corrected. Here are five ways to increase your financial controls so that you can lower your business risks when it comes to the handling of cash and cash equivalents. As you read the list, check to see where you can tighten up controls in your business. Checking for Checks Do you have blank checks lying around? If so, reduce the temptation and get them locked up. You can also go a step further and have your accountant run a report each month (or week) of missing check numbers. If any checks are unaccounted for, take action by processing Stop Payment orders at your bank. Bank on It If you are still getting your bank reconciliation on paper, where does it get mailed? The business owner should always see the bank reconciliation [...]