Business Management Gone Wrong
What if you had saved over 20 stacks and one day, it was gone? Often solo business owners fail to properly manage their businesses because they don't have proper business advisors supporting them.
A Chicago business owner - a mechanic - lost his savings and was on the hook for another 5K. Criminals had gotten a hold of his bank card and went on a shopping spree stealing more than $23K and leaving another $5k that went into overdraft charges.
As you can imagine, this business owner was devastated. Read the article here. The business owner had received all of his bank statements but never reviewed them thinking that his money was safe in the bank.
Based on that behavior, I can bet that he didn't have an accountant either. This business owner is not the only one who has made mistakes like this.
A few months back, a business owner consulted with me regarding theft from former employees amounting to over $15K where they had written multiple checks from the business. This was caught during the end of the fiscal year while planning for taxes. The difference here is that there was a CPA on the books who's duties were to review financials on a monthly basis and didn't. Like the mechanic business owner, this owner also didn't review bank statements.
Often, business owners believe that it's enough to do the bare minimum but it's not. The more your business grows, the more you need trusted advisors to help you manage your business to avoid losses.
The lesson here is that if you are "penny pitching" on hiring outside support, you'll lose more than that in the future because it's impossible to do everything alone. Allow someone to help you.
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This article is a service of SL DeBarros Law Firm, LLC. We offer a wide array of business legal services and can help you make the wisest business choices throughout life and in the event of your death. We also offer a Business Protection Start-Up Session or a Business Audit for an ongoing business, which includes a review of all the legal, financial, and tax systems you need for your business. Call us today to schedule.
