Business owners toss around “Cost Control” as if they truly can ‘toss around money’. But there isn’t anything further from the truth. Your bank account should never be viewed as, “Look, I have money in my account. Let’s spend it.”

Please, promise me … if you are anywhere in the ballpark of having that view towards your business, put the handling of accounts in someone else’s hands. You want your business to survive, right?

It’s time to re-evaluate the types of controls you have in your company to handle the outgoing of cash. By controls, I mean systems in place, checks and balances and managers. Finance managers, Accounts Payable & Accounts Receivables can all be one person or you may have multiple people.  The one thing to keep in mind is if you have your hand in the money jar, you want someone in place who can hold you accountable.

Consider the following systems:

1. As you set up your accounts payable and receivable pay close attention to your payment due dates. Scheduling out accounts receivable for more than a net 30 is not a good idea. Many small businesses will deal in net 10 or net 15 to help keep a good cash flow.

2.  Make sure you have a solid bill paying strategy in place. This includes payroll and taxes. As the owner of the company you can set yourself as an employee and only take a small salary instead of using your business account as a line of credit. (Never a good idea)

3. Also, be sure you have emergency savings accounts set up so you can keep your business running in the face of unforeseeable happenings.

There’s an endless list of possibilities that can hurt your business. But if you plan ahead you can meet them head on. Shoot to have 6-12 months of cushion set aside to cover the minimum if you get hit with any problems.  It’s amazing how fast one problem can compound itself into two…then three… Then… well, you get the picture.

Stay in control of your costs – and don’t let your costs control you.