Wrong Assumption of Cash in Bank & Solution

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Having cash in the bank and assuming it's all profit - Many great entrepreneurial businesses have seen their value eroded simply by their owners assuming that all the cash in the bank is

theirs.

Going concerns are kept alive by the ability of an entrepreneur to discern the differences between cashflow (the live-wire of any business), income or revenue and profit.

To hedge against such problems, it is important to keep records of all costs and expenses involved in running your business, your margin per sale, the sales figure. If these seem boring to you, employ an accountant, book-keeper or better still, purchase an accounting software to help you keep track of these details.

In addition, request from your bank to open an extra account where you can always transfer the margins you make to, so you differentiate which monies belong to the business and which are for customers or clients.

Read 440 times Last modified on Monday, 04 May 2015 04:52
Morakinyo Beckley

Co-founder and COO of Oyoyo Retail Limited and Founder of Bringitbay Limited. He holds a Masters in Entrepreneurship from the University of Essex, UK and a BSc in Economics from Lagos State University, Ojo. He has a background in banking - with exposure to Retail Sales/Operations. He has core competence in sales and logistics and he's an avid reader and tennis player.

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