In his article “12 Signs Your Business is Hemorrhaging Money and How to Stop the Bleeding” , John Rampton lists 12 ways your business could be losing money. Here are the 12 Signs and how Sheffield Bookkeeping can help.

1. You’re not tracking your expenses.

Don’t feel too embarrassed about this. There are more businesses than you’re aware of that aren’t tracking their expenses like utilities, rent and payroll. However, that’s a problem for business owners because this doesn’t let them know how much they’re spending or earning. In other words, if you’re spending more than your business is bringing in, then you’re just asking for a financial disaster.

How Sheffield Bookkeeping can help: Start by gathering receipts and documents that detail your expenses, and then hand them over to your bookkeeper. It’s as simple as that! Once Sheffield Bookkeeping helps you get organized and your books are brought up to speed, just send your receipts to your bookkeeper at the time of purchase and we will take care of the rest for you.

2. You’re unable to file your taxes.

Speaking of expenses, one of your greatest is taxes. So, if you’re unable to pay sales, payroll, or income taxes on time, then that’s a bright, red flag that you’re not properly managing your cash flow. This is a major headache since this results in excessive costs of tax penalties.

How Sheffield Bookkeeping can help: There is no better defense when tax time rolls around than an organized accounting system. Sheffield Bookkeeping can help you create a chart of accounts and keep your books organized so that a CPA is easily able to access the information needed to file your taxes. Neglecting your books is a sure way to give yourself a tax nightmare.

3. You’re drowning in credit card debt.

Don’t kid yourself. Credit card debt is bad. The interest rates are high and they don’t help you build wealth. However, that doesn’t mean that you shouldn’t have a business credit card on-hand. In some scenarios, paying with plastic can come in handy when you use it to earn rewards or as a very short-term form of payment when you’re in a pinch. But, if you’re drowning in credit card by using it carelessly then you’re ultimately spending a small fortune on interest. And, that’s money that you could have used to invest in your business’s future.

How Sheffield Bookkeeping can help: Sheffield Bookkeeping can help you create a plan for the future and accurately track your cash flow so that you can make important decisions about your business, like where to invest your money and how to pay off your debt.

4. You’re paying late fees and juggling bills.

There are two causes of this scenario. Either you don’t have the money to pay your bills expense. This means that you’re paying late fees, or even worse, your services will be cut-off or your account will be placed in collections.

The other reason is that you’re just lazy. And, if that’s the case, then shame on you. You’re just throwing money away each month.

How Sheffield Bookkeeping can help: Having Sheffield Bookkeeping on your side means that you no longer have to worry about the tedious task of getting your bills paid each month because we can do it for you! If you’re struggling to make ends meet each month, we can offer suggestions on budgeting and finances through our business consulting service.

5. Your customer invoices haven’t been paid in over 90 days.

We’ve found that if an invoice hasn’t been paid within 90 days, then you won’t be paid. In fact, only 18 percent of those invoices get paid following 90 days. And, if you aren’t bringing money in, then how can you pay your expenses?

How Sheffield Bookkeeping can help: There’s no better way to make sure you get paid than through an efficient Accounts Receivable process. This is one of the most important parts of running a business and it can so easily fall through the cracks. You’re very busy. We get it! Sheffield Bookkeeping can help you by implementing and improving on your existing process. Don’t have an Accounts Receivable process? No problem! Let’s talk about getting one set up for you.

6. Not negotiating.

While the price tag is set-in-stone during B2C transactions, B2B transactions aren’t. If you aren’t negotiating with vendors, then you’re overpaying.

How Sheffield Bookkeeping can help: Sheffield Bookkeeping can step in as liaison between your business and your vendors. Juggling multiple vendors can be a challenge so we’re here to help.

7. You keep up with the Jones’s.

I understand that your main competitor just bought a swanky new office, has the the latest gadgets, spent a fortune on handmade furniture and has a freaking in-house chef. And, that’s infuriating. Here’s the thing. That doesn’t mean that your business isn’t better. They may have dumped all their funding into those expensive materialistic things – which means they can’t invest in improving their business.

How Sheffield Bookkeeping can help: We can generate accurate and timely reports for your business so that you can see where your money is going and what areas need improvement. Once you’re able to see everything outlined in front of you, it will be much easier to figure out how to reduce your overhead.

8. You have trouble meeting payroll.

Payroll is arguably your second most important expense after taxes. So, if you’re stressed out about paying your employees, then you can be certain that you’re in serious financial trouble. And, if this keeps happening, you may get into legal trouble as well.

How Sheffield Bookkeeping can help: Sheffield Bookkeeping can set up a consultation with you to create a plan in which payroll is a top priority. Don’t spend another month worrying how you will pay your employees.

9. You don’t have an emergency fund.

Setting aside a little something for an unexpected expense is recommended not just for business owners, but pretty much everyone. For example, what if you run a moving company and a couple of your trucks are shut down due to flat tires and mechanical problems. With your trucks in the garage, you can’t make money. But, what if you don’t have the money to make the repairs? Now you have to scramble and do something desperate like take out a loan or line of credit.

How Sheffield Bookkeeping can help: Budget, budget, budget! There will always be unexpected expenses but when you’re paying your bills on time and getting paid quickly with help from Sheffield Bookkeeping, your business is guaranteed to run more smoothly.

10. You’re not making wise hiring or outsourcing decisions.

Payroll is typically the biggest expense a business owner is responsible for. It’s one of their most expensive expenses. Hiring the wrong people means that you have to keep training new employees over and over again. That gets expensive.

If you’re not ready to hire full-time team members, outsource tasks to talented freelancers. This is almost the norm these days. With more than 54 million freelancers, there are many options. But, don’t go overboard. Outsourcing too many tasks can quickly add-up.

How Sheffield Bookkeeping can help: Wait, did you say freelancer? Look no further! Hiring Sheffield Bookkeeping is a perfect way to get the most bang for your buck. We can help you with a multitude of services without increasing your HR responsibilities or your foot print (an employee needs space and equipment to work).

11. Your finances are disorganized.

I can admit that bookkeeping isn’t at the top of priorities. But, I quickly learned years ago that it’s necessary if you want to succeed as a business owner. For starters, it makes managing your invoices and expenses a whole lot easier since you which payments have come and gone. That’s also useful during tax season. Additionally, keeping your books organized makes it easier to claim deductions and secure funding since investors will want to examine your books.

How Sheffield Bookkeeping can help: This is exactly where we come in! We know that having another expense can seem overwhelming which is why we can customize our services to meet your business’ needs. You’ll only pay for what you need. The peace of mind that having your finances organized can offer is priceless.

12. You’re getting bad financial advice.

By all means. Hire a professional who can keep you updated on the latest tax regulations and steer you in the right direction financially so that you’re more informed decisions and stay-on-the-right-path. Because finding the right person for this job is so important, you have to make sure that this individual is legit.

How Sheffield Bookkeeping can help: Sheffield Bookkeeping has 15+ years of experience in providing full service bookkeeping and business consulting. Just see how our clients feel about us on our client testimonials page!

If we can’t help with what you need, we will point you in the right direction. We are also able to refer you to a CPA if your tax needs surpass what we are able to help you with.

Contact Sheffield Bookkeeping at info@sheffieldbookkeepers.com.

12 Signs provided by John Rampton.

https://www.entrepreneur.com/article/284063