The money that you invest in your startup could have taken years to save. This could be a majority of the money that you have to your name so it is important to be careful in terms of money being spent. The importance of spending money on infrastructure and other areas that will provide ROI can help keep cash flow healthy. Wasting money can impact growth negatively as taking out loans can cost thousands in interest annually. Setting rules for spending and managing money is essential to ensure the sustained success of the business. The following are rules that you should have for your money at your startup.
Always Do a Final Check of the Books
Doing a final check of the books at your startup is important. There have been instances where money was embezzled at a small business over the course of a few years. Making sure that is a final check is important whether you do it or have a trusted CPA firm assist. Doing an audit can show where money is being spent and where it is being wasted. There could be a number of tax breaks that are being missed if you are not using the help of a tax professional. The last thing you want to have to do is enlist the help of a federal crime attorney due to being charged with tax evasion.
Use an App to Track Employee Expenses
There are so many pieces of technology that can make tracking expenses immensely easy. Take the time to look at various apps that you can use to track whatever is spent. You might identify a pattern of costs being overstated or even overlooked. Making sure that employees never pay out of pocket is important as it can cause resentment and rightfully so. Per diem money should be reasonable as it is a perk of a job that can impact the quality of the job for those that travel weekly.
All Money Spent Should Be Tracked in Terms of ROI
You might want to splurge from time to time but make sure that is done by treating employees well. There shouldn’t be things that you are spending money on that you think are working. You should know whether a marketing campaign is generating results. Gathering this data will make for wiser spending well into the future for the company. Data driven decisions are going to be far superior to those made due to emotions.
Keep Payment Details on a Need to Know Basis
Payment details of a company card or account should be kept on a need to know basis only. The last thing you want is an employee to slowly drain an account for personal expenses. This will also make things much easier when an employee is terminated or has gone on to another job.
Setting rules for how money is spent and managed at your startup can help save you from catastrophe. Protect your business and employees by making the right decisions.