A businesswoman thinking — Bobby Pen
Review your budget
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If the debt keeps piling up, you need to revise your budget and find out if there are specific costs that are placing your business into debt and cut them off. For instance, you could downsize your office space or do away with costly phone systems. Essentially, your budget must be based on the current financial situation of your business.
Ensure that the revenue of your business can more than cover your fixed monthly costs like rent and utility bills. Next, a portion of the budget should be used to take care of variable costs such as manufacturing materials. The remaining funds should be devoted to paying down your debts.
Financial experts say that if, for instance, you have credit-card debt, you should pay off more than just the minimum else your debt will keep building and it’ll take years to pay off.
The good news is there are tools to help you keep track of your budget, like QuickBooks or Quicken, Sage Software’s Peachtree, Sageworks’ ProfitCents, and MS Money.
