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What Could be Causing Your Small Business to Lose Money?

Business problem

While most of business owners spend a great deal of their time focusing on how to make money not enough emphasis is put on the areas that might be causing the business to lose money.  It is always important to look at both ends of the business spectrum in order to keep the business a viable and successful.

One of the biggest money burners that can occur in a business is having too many meetings.  If you speak  to the executives in your firm you may find that many of them are complaining that their time which is money is being wasted in meetings.  Then you may also find that many of them are saying that the meetings are not being effective enough and helping them with their work responsibilities.  It is important to realize that you are paying your staff for their time in the meetings.   So you may want to take a closer look at this and either scaled down the number of meetings that you’re holding or at least make them far more productive.

While most businesses are doing their best to go a paperless there is no total and to the amount of papers that do end up in any type of business and this even includes an online business.   You may be paying a staff member to do filing of these hardcopies which means that you may not be putting enough effort into it going a paperless or knowing all of the resources that are available to you to help you reach the goal of dramatically reducing the amount of paper content that you have

Another big problem that many individuals have when they start an online business is that they tend to print off everything that they are generating on their computers.  They have not gained the security yet of knowing that much of their data and information can be stored properly on their computer system, however it is important that the proper security measures are put in place for this.

Another area where there is a potential for money being lost is in the expense reports.   By having these automated and a good tracking system in place there is much less room for error then there is by manually trying to check them.   It is most important that even innocent errors are caught quickly, and it is also a security measure to be sure that staff members are not taking advantage of their expense accounts.

While most owners will stay on top of the organization for their executives, often the disorganization that takes place in general in the office can amount to a half the amount of money lost each year.   This could be simply because they are wasting far too much time either looking for hardcopy documents or even the computerized documents because the proper system is not in place.   Automation is the key to the success of business today and using the Internet certainly allows for this.  One of the greatest tools that is becoming available and is rapidly gaining in popularity is using the cloud.

 

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Sam Seidman, CPA, CA, LPA
629 Sheppard Avenue West
Toronto, Ontario
M3H 2S3

Telephone: (416) 398-1700
Fax: (416) 398-6226

Chartered Professional Accountant, Chartered Accountant, Licensed Public Accountant

Email: sam@torontoaccountant.ca

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