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E-Myth – “Why most small businesses don’t work & what to do about it”

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Outsourced CFO | Financially Viable Business Pays Bills On Time

One of the most important things that a business owner can do early on in their business that will help them succeed says outsourced CFO is pay their bills on time. The reason why, is because when business owners pay all of their bills on time, they will be able to see very easily if they are making enough money in their business to meet all of their financial obligations. By learning how to tell if they are making money early on in their business, can help a business owner learn what activities they need to do to be more financially viable in their business.

One thing that entrepreneurs need to do, is when they realize that they are not making enough money to cover their expenses in their business, is consider their margins, consider their advertising, and consider their overhead. One of those three things will help an entrepreneur who is not making their ends meet do that. Therefore, when a business owner discovers that they are not making enough money to cover their expenses, by acting fast, can help them fix the problem quickly. However, outsourced CFO says it is very important for entrepreneurs to realize that if they are not paying attention to their bills every single month, they will not have the information they need to act as quickly as they should be.

A business owner also needs to understand that no matter how smaller businesses, if they are financially viable small, when they scale up, they will be financially viable large says outsourced CFO. However, business owners often believe the opposite to be true. They believe that if their business is not financially viable small, the solution is to grow larger, they will be more able to pay all of their bills. However, this does not work in reality. In a business owner that scales up a business that is not financially viable, will end up scaling up their problems as well.

One other thing that business owners need to keep in mind, is that they need to pay their bills on time, and address the situation if they are not making their ends meet, because if they are either not paying on time month, and they are not making their ends meet, it is going to end up in debts accruing more and more, until they have a pile of that that can be impossible to get out from underneath says outsourced CFO. Therefore, business owners will make a bad situation worse simply by not paying their bills on time.

It is very important for entrepreneurs to understand how important it is to pay all of their bills on a regular basis, and if they are not making ends meet, that they are changing their business accordingly, to address that problem. By being more financially viable, either through increasing their margins, increasing their advertising or minimizing their expenses can help them be able to have a successful business.

Outsourced CFO | Financially Viable Business Pays Bills On Time

It is very important that entrepreneurs are keeping an eye on paying their bills every single month on time says outsourced CFO. In fact, this is so important to help entrepreneurs avoid running out of money in their business. 9% of all entrepreneurs that fail say that running out of money is the reason why their business has failed. Therefore, keeping an eye on this can help business owners learn to avoid problems.

One thing that business owners may discover, is that if they get into the habit of avoiding paying bills on time, is they will end up accruing their debt, until it can be very difficult to pay anything. When this is the case, outsourced CFO says that business owners may find new things to avoid paying to give them the money to pay what is outstanding in their business. They may believe that failing to pay taxes can help by the time to pay their outstanding bills. However, not only is this a bad idea, but it can end up costing a business owner even more money than they realize.

Not only will can do revenue agency seek out the taxes that they are owed very aggressively, outsourced CFO says that they actually have even more power than many people believe. They can either go directly into an entrepreneurs bank account and take the money that they are owed directly out of it. Or, Canada agency can literally freeze an entrepreneurs bank account. This will make it not only difficult, but impossible to continue writing an entrepreneurs business. Therefore, when they avoid paying taxes on time, they can end up putting their business into a situation that ends their business.

Something else that business owners may not take into consideration, is that not only will Canada revenue agency collect on their taxes aggressively, but the penalties that are associated with failing to pay taxes on time are huge. For example, the penalties associated with not paying payroll remittances on time is the steepest that Canada revenue agency hands out. The reason why, is because the government views payroll remittances as money being held in trust. When an entrepreneur collects the money from their staff, they are collecting money on behalf of the government. If they do not pay it on time, or at all, they views it is an abuse of government money. This is money that a business owner has absolutely no use in using, because they are collecting from their staff, in order to give to the government. Because of that, business owners can expect to be hit with a 20% interest penalty, with the interest being accrued per day.

Therefore business owners need to understand that paying their bills on time not only can help them succeed, but when they do not pay their bills on time, and they are not making their ends meet, they can end up feeling to pay for so many things, that could impact their business to point of causing them to go out of business. Therefore, business owners who want to succeed in business need to ensure that they are paying all their businesses bills on time.