• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Huddleston Tax CPAs | Accounting Firm In Seattle

Huddleston Tax CPAs | Accounting Firm In Seattle

  • Tax Services
    • For Individuals
    • For Small Businesses
    • For Startups
  • Practice Groups
  • Tax Guides
    • Self Employed
    • Rental Property
    • Offer In Compromise
    • City Tax
    • The Tax Audit Stress Test
    • The Tax Calculator
  • About
    • Our Team
    • Meeting Locations
    • Careers
    • Instructors at Small Business Webcast
  • Contact
  • Blog
  • Client Portal

Why Is My Business Bleeding Money?

Home » Blog » Why Is My Business Bleeding Money?

November 1, 2019 By john

If you’re asking this question, I can imagine you feel as though you’re in dire straits. It’s difficult enough to create a sustainable business, let alone grow while you feel as though your expenses are outweighing your profits. Capital and cash always top the list on every entrepreneur’s priorities. However, you can bring your company a financial improvement by changing your operational methods in place, but there are also some easy things you can do to increase your profitability and savings in the day-to-day management of your business.

Do not mix business and personal finances

First, do not mix your personal account with your business account. There’s myriad reasons why you shouldn’t, but the most important being taxes as this increases personal liability and clutters your accounting records. No matter how tight money gets, fight the impulse to cover your company funds with personal funds because it’ll only make matters worse.

Creating a personal reserve fund and a business budget is the best way to maintain a consistent division of your expenditures. Rigorously adhere to both of them in order to avoid using loans and credit cards for your company or yourself. If you aren’t already doing this it could be the reason you have been bleeding money lately.

Get out of debt

Next, avoid or get out of debt. Whether it’s debt on credit cards, your mortgage, or perhaps even late payment charges on retailer invoices. Take the time to thoroughly review all of the current debt payments to find ways to get those debts paid and off your table. When you have a high interest small business loan, or even a average rate, pursue ways of refinancing and consolidating certain loans into a lower interest alternative.

Stay on target with bills and deadlines

It’s essential that you pay all your business bills on time, the same as you do with your household finances. Credit card and late payment for mortgages can be expensive, and add up, to say nothing of late payment charges on retailer or utility bills. The same happens for taxes: paying too late could lead to severe penalties.

Always guarantee there are no company payments slipping through the cracks, set up regular reminders. In general, the profit-loss ratios are small for young companies. The disparity between the end of the year in the red or in the black could be to prevent late fees.

Invest in an accounting class (even an introductory one)

A class isn’t going to make you an expert, but it’ll help you understand the basics of company accounting, even if you employ an accountant or work with a bookkeeper. If you can, take an introduction to accounting class online or at your local college and learn how cash flows into and out of your business.

The more you know your company operations and cash flow, the more you will be ready to make decisions on institutional money management. And while these guidelines get you going, nothing is a replacement for being constructive and hands-on when it comes to managing your money.

Filed Under: Uncategorized

Primary Sidebar

  • Facebook
  • Instagram
  • LinkedIn
  • Twitter
  • YouTube

Recent Posts

man opening direct mail envelop, with an email on screen, and his phone all notifying him of bills due

Consolidating Debts: When Cash Flow Falls Short

Carrying debt across multiple accounts -- revolving high-interest credit cards, … [Read More...] about Consolidating Debts: When Cash Flow Falls Short

man struggling over debts at his desk

Breaking a Roth IRA: What Do You Lose (and How to Avoid Penalties)

When unexpected financial emergencies strike, watching your bank account dwindle … [Read More...] about Breaking a Roth IRA: What Do You Lose (and How to Avoid Penalties)

a cluttered desk with a transparent piggy bank, some receipts and loose stationery on the surface

Money-Saving Rules That Work (and Why Your Bottom Line Depends on Them)

Whether you are scaling a SaaS startup in South Lake Union, running a dental … [Read More...] about Money-Saving Rules That Work (and Why Your Bottom Line Depends on Them)

Contact

18208 66th Ave Ne, Ste 100
Kenmore, WA 98028
(425) 483-6600

Meeting Locations

Bellevue | Bothell | Issaquah
Kenmore | Kirkland
Seattle | University District
Copyright 2026 Huddleston Tax CPAs | Privacy Policy | FAQ