In this article I would like to discuss four tips, tricks, and techniques that you can use to spot money mistakes that company managers tend to make often.

The recession that started at the end of 2008 and has moved on into 2010 is wreaking havoc on many companies across the board. Profits are down at many companies and in fact many of them are laying off workers in record numbers. Now more than ever it's important for managers to run a tight ship and cut down on any money mistakes they may be making. In this article today I'd like to discuss four specific mistakes managers make and how to spot them and correct them quickly.

The first mistake is the imprudent use of company cash. This can range from anything like excessive perks to large officer loans all the way up to purchasing equipment that doesn't really produce an increase in actual cash flow. When times are tough, the easiest thing to do to raise cash in the company is to cut back on perks. This may have a demoralizing effect on employees, but in times like these when everybody realizes that we're in a recession, it's easy to justify doing it by explaining that it's either the perks or their jobs; but one of them has to go.

The next mistake is in not having a formal business plan that deals with cash flow. Cash flow projections are vital for any company and even more so in times of depression or recession like we are in today. Without proper projections, the company can't know how well it's doing or what it can do better.

The next mistake is in management, especially senior management, not monitoring the actual disbursements of money versus the budgeted amounts set forth. Whenever you don't track actual expenditures it can be very easy to spend more money than you had expected. Now more than ever managers should keep an eye on actual expenditures versus budgeted amounts.

Finally the fourth major money mistake is in not keeping track of accounts receivable correctly or at all. When times are good it's easy to let accounts receivable pile up because you're fairly confident the money will come in eventually. During times of recession when everybody is feeling pain, on the other hand, getting a firm grip on Accounts Receivable is vital because the companies who owe you money may very well go out of business tomorrow and a customer who owes you money may very well declared bankruptcy. Monitoring accounts receivable turnover is an essential activity during down times like we're seeing today.

So there you have four very simple tips on how to spot four major money mistakes that managers tend to make especially during times of recession. Keep an eye on them and your business can only do better. Failure to watch out for these things can result in your business plummeting to the ground.

J.P. Morton runs a indoor air conditioner web site where he also reviews the best casement air conditioner for your home. He has been an article writer online for well over 10 years and also enjoys rock climbing and white water rafting.