It’s almost winter time. That means you have to be careful about frozen pipes and water leaks. What about “money leaks”? They can be just as detrimental to your business as a water leak can be to your home.
Examples of money leaks include:
- Overpayments in insurance due to incorrect classifications
- Vendor overpayments
- Employee time overpayments or wage disputes
- Unclaimed property
- Uncollected receivables
- Auto renewing contracts or fees
- Out of control bank fees
- Late fees and interest
- Bank errors
- Inventory loss
- Vendor cost increases
- Employee theft
- Sales tax errors
- Under bidding, loss on jobs or projects
- Poor staff training
- Old computer systems
So how do you stop these money leaks from causing your business serious financial loss? The problem is, you’re busy and your staff is busy and not everyone is familiar with the hundreds of ways your business can lose money.
For example, I listed “poor staff training” as a money leak. If you staff takes longer to do a job because they are untrained, you are paying more for that task. Worse, if they make a mistake that can affect your customers, it can cost you out of pocket. Another example, if your computer systems are outdated and it takes more time to process transactions, that’s a money leak.
Unfortunately, most business owners don’t look for the money leaks until either they’ve found one by accident, ie. employee theft, or their business is no longer profitable. In my experience, by implementing sound processes and in your business by hiring the right people, you can reduce your exposure to these losses. Also just by paying close attention you can reduce your risk of loss.
We offer a cash flow management service that can help find those leaks and keep your hard earned money from walking out the door. We’ve helped hundreds of business owners and individuals recover “lost money” and stop the leaks in their business.
If you want more information on how to stop money leaks in your business, download our free report here.
For a Free, no obligation consultation on our cash flow management services, contact us at 775-747-5833 or send an email to firstname.lastname@example.org