These 4 Financial Mistakes will Destroy your Business

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If you run a business then you need to make sure that you avoid these mistakes. If you don’t then you may end up increasing the amount of risk that your business is exposed to and this is the last thing you need.

Not Setting up a Bank Account

Some assume that if they have a business bank account in their name, and because they are the sole founder of the company, they do not need to have a corporate bank account. Indeed, you don’t need to have one as an owner, but you can save yourself a lot of unwanted trouble if you set one up. If your company was to take on a partner or an investor, and there is a dispute about how to split the money up, you need to show that you have records regarding the money that was paid into the account, and when.

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Spending too Quickly

Do not spend any money before you can understand what’s involved. Just because you have some money, doesn’t mean that you should go ahead and spend it recklessly. The last thing you want is to deplete your funds because you will have a lot of things to pay for later down the line. This goes both ways at the end of the day. If you need to raise the funds yourself, don’t worry about getting everything you need right now. It’s better for you to get your company up and running now than wait until you have enough to fund every stage yourself. Just be mindful of what you are buying and why.

Ignoring Taxes

If you ignore your taxes then you will be making a huge mistake. You may even find that you end up getting into trouble for it as well.  If anyone suspects that you are not paying your taxes properly then you may have to get an audit done, and this will show what money you had coming into your account and what you had going out. If you have paid for a piping analysis, or for any work to be done to your business premises then these are all expenses you can claim for. That being said, if you make a mistake and claim for too much then this can also land you in trouble. If you want to claim the right expenses, then make sure that you work with a financial advisor.

Not having a Solid Plan

You have to make sure that you have a business plan if you want your company to be a success. One thing you can do is get a template online and then fill it out. When you do this, you can then document everything with ease. You can also work with a business mentor, as they can advise you on the goals you can set for your company, and also help you to understand the current economy.  Sometimes experience is priceless, so don’t overlook things like this or it could work against you.

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