Many small business owners struggle with financial management. As a small business owner, it is your responsibility to make sure your business is growing and thriving in the most effective way possible. If you’re not careful, however, you could end up making costly financial mistakes.
The U.S. Bureau of Labor Statistics shows that approximately 20% of small businesses fail within their first year, with that figure increasing to 45% by their fifth year. While many factors contribute to small business failure, one of the most significant is cash flow and financial management problems.
From cash flow issues, such as a lack of budgeting, to inaccurate bookkeeping practices, a lot can go wrong if you aren’t paying careful attention to your business’s finances.