Preventing Cash Leakage in a Small Business

Cash leakage means money leaving the business without being properly noticed, recorded or controlled.

Track small expenses

Small expenses are often the biggest source of leakage because owners ignore them. Transport, airtime, packaging and small purchases should still be recorded.

Control withdrawals

Owner withdrawals and staff advances should be recorded just like normal expenses or cash movements.

Use daily balance checks

A daily balance check shows whether the money expected is the money actually available.

Review weekly patterns

Even small daily losses can become large monthly losses. Review shortages and differences every week.

Preventing leakage is about discipline, not complicated accounting.