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Financial Mistakes of Running a Business

Whether it is a beginner entrepreneur or a long time in the business world, mistakes in managing a Finance of the company are classic. That is, anyone can make this mistake. In fact, not only small-scale home-based businesses but also a fairly large business with several employees also can make mistakes in financial management. What’s interesting is, these business people don’t feel like making a mistake. Financial mismanagement in the company does not stop at the difference in numbers on paper and in reality, but it can also have an impact on losses. If this continues, then the business owner will continue to suffer losses. There are many reasons why you should save your company’s financial management even to prevent making financial mistakes when running the business, including:

Mix Personal Finance and Business Finance or Companies

This is a fatal mistake but is still often carried out by business people. It is not only the affairs of the account that are mixed between personal and corporate accounts but also their mixed use. For example, you use company account balances for personal needs or use personal money to meet company needs. There are many disadvantages when personal and corporate finance is mixed. Of course, you don’t want this to happen.

Separate Admin and Cashier

Not a few business people who entrust the business of counting money to the cashier and no admin. Admin is usually done by business owners. The flow of money is also not through the admin records that should be. For example, the financial flow of a transaction is from the consumer, then calculated at the cashier and then entered into the business owner’s record. If the money is calculated right and ok, then the money goes directly into the account or other storage places such as drawers.

Not Making Real Cash Calculations

Have you as a businessman ever experienced irregularities between balances in a company account with notes or balances that are in bookkeeping? Of course, calculations on paper can have different results from the real money. You transact using real money while recording calculations only with numbers. It does not rule out the possibility that there will be a difference between real money in the account balance and recording the balance in the bookkeeping.