Company’s financial difficulties and their prevention

Regularly monitor your company's profitability with basic financial calculations. You ensure that deductible expenses are always kept up to date in the accounts. This means that the income statement, balance sheet and cash flow statement provide a good overall picture of your company's assets and liquidity.

Close cooperation with the accountant helps you monitor your company's profitability and financial situation. You will also be able to cope better when you do not have to worry if things are in order. 

When you regularly assess the financial situation:

• you can prepare for invoices and their due dates
• temporary payment difficulties do not endanger your company's finances
• you will notice if your company's profitability is at risk of deteriorating in the future
• you will notice if your company does not make enough money for your private costs.

You should regularly compare your financial figures with your competitors and find out what the possible differences are. 

Competitor analysis helps you identify who your competitors are and how you can do better. A competitor analysis may also highlight opportunities for partnerships or networking.