Tune up your finances before hidden weaknesses cause a break down. Click "Full Article" to get a checklist of financial danger signs that can help you pinpoint shortcomings and take corrective action.
Take the Trouble To Find the Trouble |
A successful business can always use a little hindsight to learn from past mistakes, but what you really need to keep your company thriving is a lot of foresight.
Playing the "if only" game can be a waste of precious time, particularly when you can avoid missteps by learning to spot weaknesses before they get out of control
Here's a list of Financial Warning Signs you can use to fine tune your finances.
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Warning Sign |
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Bank loans and other debt starting to get behind. |
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Too much interest payable on large loans. |
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Customers aren't paying quickly enough. |
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Lack of cash flow. Profits and sales, but still no cash. |
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Not taking advantage of discounts. |
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Expenses show a dramatic trend upward. |
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Poor advisory relationship with bankers, accountants, insurance agents, and lawyers. |
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Popular items are not available when customers want them. |
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Inventory levels exceed needs. |
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Payments to suppliers and vendors are consistently late. |
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Tax payments are late. |
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Hard to meet payroll or employees are paid late. |
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Excessive or mismanaged seasonal swings create cash shortage. |
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Personal expenses are paid from the company account. |
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Poor security, theft, or risk of theft exists. |
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Excessive fixed assets, especially compared to supporting sales. |
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Financial records are inadequate or aren't current. |
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Financial skills to examine the business need improving. |
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