![]() 70% closed because they refused to acknowledge what wasn’t working for them, and not requesting help, advice, and guidance when they needed it.īecause of its importance in running a successful business, a good expense management system should make tracking your income and expenses easy and fast, in addition to being able to help you stay compliant with State and Federal finance laws and regulations.73% of small businesses went out of business due to being overly optimistic when it came to projected sales and underestimating how much money would be required to achieve those inflated sales goals, and.79% of small businesses had to close their business due to starting out with not enough money to cover their start-up costs.82% of small businesses that went out of business, did so due to either having poor cash flow management skills or because of having a poor understanding of how cash flow works.Bank (the fifth-largest banking institution in the United States) survey, there are a couple of interrelated reasons which are the most common causes of small businesses going out of business Here are some facts that highlight how important having an expense management system in place that works for your specific business needs: And, in order to be compliant with tax laws in the United States, you must keep track of your Capital Expenses and properly report them to the IRS. Any “ normal and ordinary” business expenses that you have to pay for are tax deductible. The importance of a strong and efficient business expense management system can not be overstated. Too many businesses become hyper fixated on their sales, neglecting their accounting for entirely too long after they have been established. It seems pretty obvious that these costs are necessary to keep a business running, but-despite how elementary it is-not every business owner realizes the need for business expense management software when they are first starting out. Any expenditure that you have to make in order to keep your company running is a business expense. Business expenses are any costs that are incurred during the ordinary course of business, such as employee payroll, manufacturing costs, material and inventory expenses, business travel, advertising, and office space costs.
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