If you are a CEO, then you’ll want to avoid these top-CEO money mistakes. If you don’t, then you may find that you end up struggling to stay afloat in the busy and competitive commercial world.
Here are a few CEO money mistakes to avoid:
1. Failing to Plan
As the old saying goes, if you fail to plan, then you are planning to fail. If you can, you need to try and create a spending plan, and an investment guide. Adjust the figures as you need to as well. Some of the things you can do include blocking out time in your calendar so you can review your latest expenses, as well as keeping employees informed about the financial position of your business. If you can do this, then they will be much more likely to assist when it comes to waste reduction, which can have an impact on your bottom line.
2. Too Busy for Advice
As a CEO, you probably have a good idea as to how you should be running your company. With that in mind, you do need to make sure that you are seeking advice where possible. Have the right information to hand so you can make good decisions, or wait until you have the right people to make good choices. If you can do this, then you can avoid missing out on opportunities that bring about positive growth. Seeking financial advice is also critical. This will help you to know if you should be seeking a combination of salary and dividends, or whether you should be putting money away into an investment account.
3. Record Keeping
People often say that they don’t have the time or energy to set up, and then maintain good financial records. That being said, it can save you a lot of money. Remember you can only claim what you can prove. Use apps, as well as accounting software as this is the best way for you to record everything you need. Don’t forget to use log books either so you can track people who work from home as well as keep an eye on your tax rate. Things like this can make a major difference.
4. Haemorrhaging Money
Being busy can often lead to you seeking band-aid situations. Do you pay for your staff to have coffee? If, so then it could be way cheaper for you to get a coffee machine. You can also give yourself an instant write-off when it comes to your tax bill. If you are time-poor, then this should not translate to you being cash-poor. Spend part of the week checking in with your finances, as this can be an investment in itself. If you feel as though you are too busy to do things like this, then you could be making a major mistake, which is the last thing you need when you are busy trying to keep your business afloat.
So, are you making any of these CEO money mistakes? If so then now is the time for you to turn things around. Take note of the above tips, and stop your business from being inefficient today.