Tips for managing your business expenses this New Year’s Eve – Executive World

Mixing business expenses with personal expenses is a serious mistake that can jeopardize your finances and your company’s operations.

One of the most dangerous mistakes what can you do businessman or businesswoman, is mix yours personal finance with those from your companyas this could cause serious problems with its operation.

Unfortunately, at this time of year, many of the business owners or companies, They usually combine personal expenses with business expensesdue to the increase in expenses for december holidays bonus paymentChristmas food, among other things.

According to data from Konfío, 4 out of 10 entrepreneurs the country uses a Personal card for finance your company’s expenseswhich translates into an accounting mess, high stakes and little clarity in business direction.

Tips to take care of your expenses

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To help you keep yourself right managing your expenses We share 3 tips, which by putting them into practice, you will avoid many problems.

1. Prioritize spending

Many small and medium-sized enterprises (SMEs) record late payments of invoicesamong other problems such as administration, an element that 3 out of 10 businesses suffer from, according to the Radiography of Entrepreneurship in Mexico, prepared by the Association of Entrepreneurs of Mexico (AND HERE).

To prevent this, it is advisable to perform a balance of trading accounts know the current status. To do this, you can look for a company specialized in this, or an accountant, who will guide you about the state of income and expenses, with which you will have a general overview of your finances. It is also not advisable to allocate personal money finance business expenses and vice versa.

2. Look for alternatives

Second, it’s good to look for alternatives specifically designed to improve business management. That’s how it is business credit cards (TDC)which are based on new technologies for optimizing the management and productivity of small and medium-sized enterprises.

Currently there are various options like Konfío TDC which helps streamline company spendingget immediate liquidity, postpone company expenses with a preferential rate or make payments through SPEI from the card application. In addition to permission approval of the invoice, Define roles and permissions with spending limits.

3. Define your goals

A good idea for a New Year’s resolution is define goals, both business and personaland direct them each separately. For this, it is advisable to establish company and personal budgets.

If business, it is necessary to be clear about where the capital flows, what it is spent on and what it is earned on; while personally the same will bring important benefits to your own finances. With this planning, you will be able to know when to invest and when to save.

In the end, many people find it difficult separate your business expenses from your personal expenses, but it must be done to avoid failures and have a better chance of success in both aspects; and the end of the year is the right time to start doing it.

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