Managing your company’s finances is vital for keeping your business in business. Consulting with an accountant or lawyer who is experienced with small businesses can help keep you out of financial trouble.

Many potential hazards exist that can jeopardize your company’s financial viability. Watch out for these common pitfalls:

• Taking on and keeping more debt than you can handle. In particular, this includes debt at exorbitant interest rates. Don’t take on debt that is not necessary or that can be refinanced at more favorable terms.
• Being underinsured. Work with your insurance agent to be sure you’re covered not only with property insurance, but for other potential liabilities that are common for your industry.
• Not having enough cash. Manage your cash flow in a manner that ensures you’re able to pay bills, salaries, and other expenses for several months or longer.
• Lacking life insurance for key people.  Prepare your company to be financially stable in the event that you lose a principal or key employee.