What you are about to read will shock you—your small business may be hemorrhaging money.
It’s true. Many small business owners simply do not keep track of their profit and loss on a regular basis. When was the last time you checked the numbers with your accountant? Last month? Last year? Do you have an accountant?
The two biggest and most serious mistakes that small business owners make are as follows:
- Losing track of income and expenses
- Not having a knowledgeable accountant
Keeping track of your profit and loss is absolutely necessary to maintaining the financial health of your business. Simply put, without reviewing your books every so often, you have no real way to tell if you’re even turning a profit, let alone if you’re in the red. In fact, a whopping 63% of small businesses don’t survive even six years due to financial neglect and limited financial training—and most work-at-home people fail before six months time!
