How to fix financial leaks in your business before year end 

Are you unintentionally giving money away? Here’s how to stop it before your year-end.

It’s easy to get carried away and let your business finances spiral out of control. I get it, I'm a business owner too, and let’s face it, we wear a lot of hats. So, what should you be looking at, and how do you actually do it?

Step 1 - Review all spends

We live in a subscription-based world, and it’s easy to sign up for things we don’t really use. When there’s enough money in the bank, we can become complacent and stop paying attention to how much things are really costing us, or how much those costs have crept up. Go through each item and ask yourself: is this really needed? Am I actually using it? Could I get the same thing for less with a bit of shopping around?

Step 2 - Check your debtors, or people who owe you money.

I once spoke with a business owner who was worried about paying his staff at the end of the month, while sitting on a debtor report showing £500k owed to him.

Reviewing and chasing debt is essential for growing businesses. Either that, or automate payments wherever possible. At a minimum, this should be a monthly task. But if it’s been neglected, try making it a weekly habit until it’s under control.

Tip - when was the last time you sent out statements? Sometimes, that alone is enough to prompt payment.

Step 3 - Do you have a robust financial process in your growing business in place?

Finance is one of the easiest areas to have a process. If you don’t have a clear process in place, you’re likely missing things.

Don’t wait until the year is over to make changes. Start now, and you’ll improve your profit before year-end - and as a business owner, that’s money in your pocket.