Financial issues can take many forms, depending on the size, revenue and type of your business. What most companies facing financial issues have in common, is that they have a considerable amount of debt and/or are unable to pay all current or future business expenses. They are for instance late on taxes, unable to pay the rent of the office building or late paying bills from their suppliers.

When you are unable to pay your employees, including yourself, a decent salary, a financial shortage is likely the issue.

 

First of all, it is important that you have a good financial overview. Your company has a good financial overview if:

• Your financial records are updated and complete.

• You have a list of all the outstanding loans and repayment obligations.

• You are aware of how much tax you still have to pay.

• You have a list of all the contractual agreements you are bound to, such as rental agreements and lease agreements.

• You can make an estimation of the expected revenue of this year

 

For those who don't have this yet, your municipality, a bookkeeper or an accountant can help. You can find a list with external help here. If you wish to develop this on your own, this guide on How to get a financial overview can help.

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What is next?

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• How to make a financial overview

• Evaluate your situation