10 Signs Your Business Needs Help Managing Money

Delegating Your Finances is Vital to Your Growth — and Your Sanity

Running a small business is hard. Running a small business and staying organized? Well, it’s nearly impossible. There are countless tasks to finish, decisions to make, and problems to solve every day. While your current processes may make you feel like you are ahead of the game, there’s one overlooked piece that often suffers until it’s too late.

You guessed it: Your finances. While everyone loves to make money, next to no one likes to manage money.

Managing your money is vital when you are trying to grow a small business. And knowing how much you have, to the penny, is essential for small business planning. Simply put: You can’t grow sustainably if you don’t have a plan.

The Hard Truth About Your Money
Small business owners are often overwhelmed with the day-to-day tasks necessary to run a successful company. To be an effective leader you need to ensure that you’re spending your time and energy on the things that you do best. And unless you own an accounting firm, money and money management may not be what you do best.

Delegating tasks is not admitting defeat. It’s actually a sign of good leadership. Outsourcing certain aspects of your business to experts, especially something as important as your money, is an indication that your business will go far.

But if you’re still unsure about letting go and getting help, here are 10 signs that it’s time to hire a trustworthy tax and accounting team.

1. Your books are disorganized

Are you consistently surprised at the end of the month when you try to balance your accounts? If you have more or less than you anticipated, there is an issue with your money management.

Unbalanced books may be caused by a lack of training, a lack of time, or could be a sign of a significant cash flow issue. No matter the reason, you need a money management strategy. Bringing an expert on board to develop a strategy to track expenditures can help you fix your issues.

2. You’re not tracking spending

In today’s digital economy, money flows through many channels. Subscriptions for software, invoices from vendors, and payments for consultants and freelancers… it goes on and on. It would help if you had specific strategies and workflows to keep track of it all.

3. You rely on your memory to recall transactions

Do you find yourself trying to remember money spent throughout the month? Managing your cash by memory is not an option if you want to stay successful. You need a money management system that is consistent and easy to understand.

4. You’ve been late on bills more than once in the past six months

Are you avoiding calls from creditors? If you’ve missed a payment for a bill or just forgotten about one, it’s time to get some help. Having a second pair of eyes — or better yet, a team of experts assisting you – keeps your finances on track.

One or two late payments is probably not an issue. But over time, they can start to add up and have a long-lasting impact on your business.

5. You tap personal funds for expenses

Are you paying for business purchases out of pocket? The line between business and personal expenses can quickly blur and give you an inaccurate view of your business’s accounts.

You will plan incorrectly when you have expenses that don’t appear on the books. In fact, you could be missing out on tax deductions if you’re overstating income by understating expenses that aren’t tracked, accounted for, and analyzed properly.

6. You don’t have a budgeting strategy

Quick, what’s your budgeting strategy? If you’re not sure, you probably don’t have one. A financial consultant can help you design a budget strategy to help you meet your goals accurately. Defining a strategy early sets your business up for success.

7. You’re stressed about debt

Do you find yourself stressed out about money regularly? Admitting that money troubles are getting to you is the first step. Delegating money management isn’t giving up; it’s freeing yourself of unnecessary stress so you can focus on your company.

8. You don’t have cash flow projections or estimates

How much money will come in each month? How much money will go out? Having financial forecasts allows you to prepare and plan for the future. If you don’t know what’s on the horizon, money problems are inevitable. You’ll be left scrambling to find the resources to fund your business plan, or worse.

Cash flow issues are one of the most common money problems businesses face. But working with an experienced financial manager removes many potential errors from the equation.

9. You spend more money than you gain

This is an easy one. The money isn’t there, but instead of dealing with it, you continue to spend money that you don’t have. Are your personal and company credit cards maxed out? Overspending is a common sign that you’re lacking an effective, money-management strategy.

10. You rely on credit cards or loans to pay expenses

Sure, it’s okay to use credit cards for your business. Building credit is an essential part of growing a business, especially if you want to secure funding in the future. However, if most of your business spending is through cards, you’re playing a dangerous game. Paying high-interest rates on credit card debt is a quick way to create a massive hole of debt that can be difficult to escape.

Implementing a preventative money-management plan can fully equip your business to handle the unexpected. An experienced accountant has a wealth of knowledge on alternative forms of financing and investing in the business to avoid debt from snowballing. They can also help you create a safety net to protect your business against surprise expenses with money set aside. Each month, your financial advisor will analyze your expenses and work with you to budget for the rainy days.

Relax! We’ve Got You
Did just reading all that stress you out? Even if it did in the slightest, all is not lost. While money management is necessary for every small business, it’s easy to neglect.

Working with financial experts like the team here at Semaphore Tax & Business Solutions can be a simple solution to generating some peace-of-mind. Not only will we help you eliminate money concerns, but we’ll also set your business up for future success.

Semaphore has spent decades developing strategies for small business owners to manage money and we’ve developed proven methods for growth. We have multiple solutions to solve your small business needs. From bookkeeping and payroll, to taxes and insurance, your business is covered.

For more information about how we help countless small business owners’ money go further, fill out the contact form at the bottom of this page, and we’ll find an immediate solution for your business needs.

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