By Andrew Griffiths
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Additional resources for 101 Ways to Boost Your Business
It might only be a few dollars at a time but it all adds up. To overcome this, you need to have some petty cash—say, a few hundred dollars—that you use for these smaller purchases. The key with petty cash is to keep receipts to ensure that when it’s all spent, the receipts equal the total amount. Then you write another cheque and start again. Over the years, I have lost literally thousands of dollars in unclaimed expenses simply because I couldn’t seem to get my head around the idea of petty cash.
They spend five or six hours keying in the information, and at the end of the session I am given a profit and loss statement. This costs me around $200 per month. For the peace of mind it gives me this is a small price to pay. 38 FINANCIAL BOOSTER TIPS 16 Keeping costs down without losing customers I often see companies that are going through difficult financial times trying to cut costs. The problem is that the areas where they are cutting costs are causing them to lose customers. This clearly compounds the problem and sends the business into a downward spiral.
It’s the classic vicious cycle that is very common in business. If you run a business where people pay you on the spot, you are one of the lucky ones. If you run a business in an industry that generally works on invoices and accounts, you need to be very careful. The point of this survival tip is to be careful about giving out credit in an attempt to win the business. Of course, the majority of businesses are excellent at paying their accounts. They are not the ones to worry about. It’s the others who are slow, or perhaps not trading very well, who are the concern.