Management

By Gerri Detweiler –

Credit scores are often seen as the number one obstacle that prevent small businesses from getting financing. But disorganized financials may be equally to blame.

In today’s challenging economic environment in particular, lenders want to make sure your business is viable and will be able to repay the debt. Organized and up to date finances are essential if you want to increase your chances of getting approved. Here are 5 simple ways to organize your business finances. Share on X

1. Create an Easy Filing System

“We think ignorance is bliss, but really is it filled with headaches and fear,” says Belinda Rosenblum, CPA, money strategist for business owners, and founder of OwnYourMoney.com. “Avoiding your paperwork and bills — or even a huge ‘to file pile’ — is a costly recipe for disaster,” she says. “Not opening bills often causes missed deadlines or even late fees. Opening them but then letting them pile up without filing anything can cause you to feel disorganized and out of control.” (more…)

By Ty Kiisel –

Over the nearly 40 years I’ve either owned or otherwise worked in a small business, I’ve observed that even businesses that might not be considered “seasonal” in the traditional sense ebb and flow over the course of the year, creating times when capital becomes tight and the cash flow pinch can cause an otherwise healthy business to struggle. In today’s world, small business budgeting and borrowing are more important than ever. I use these two words together intentionally, because I believe there is a synergy there for business owners who take a strategic approach to capitalizing their businesses.

A reactionary approach to a small business’ need for capital can satisfy a short-term need or meet an unanticipated shortfall, but it might not help the business grow. We see evidence of this in the failure rate of small businesses in our country. Of the 30 or so million small businesses in the United States, those that survive the first few years are far too few, and only 40% of small businesses are even profitable. What’s more, the most common reason for business failure is a lack of adequate cash. In fact, poor cash flow causes 84% of the business failures in the US. (more…)