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The Best Way to Avoid Net Loss in Your Business

We all know the dreaded feeling of realising we are in a net loss, but we don’t always know how we got there. 

How can we avoid this? Well, read on, and this article will help you avoid what is known as net loss in the best ways possible without affecting other people. 

person lost
You won’t be lost any longer, for this article will help you get back on track! 

How to Check for Net Loss 

If you have access to an accountant, you may already have a document which calculates your net loss or net profit. You can ask to see this to get a better understanding of your finances. If not, create a document by calculating how much it costs for your utility bills, wages, and taxes. Take the money you have earned and compare it to these costs to tell you whether you are profiting or losing money.  

Net loss is essentially revenue minus expenses. A negative result means you are in a net loss whereas a positive means you are in the net profit. Even though it may be a small amount you are losing a month it can add up over time. 

Read Now: How to Know if you Need an Accountant for Your Small Business 

Utility Bills 

Your utility bills are often the cause of a high net loss within your business. Within your establishment, leaving lights or appliances left on can causes a bigger build-up of electricity bills.    

As prices are fluctuating due to ongoing conflicts around the world, there is likely to be a change in your bills. Things can become more expensive, and if you haven’t budgeted for this, it will cause net loss. You may have to adapt to certain issues for a while, but at least you have confirmation of where your loss is coming from. 

Your utility bills should be included in your income document to make sure you see how much it affects you. 

Read Now: How to Manage Your Money: Saving and Investing 

Income Clean-up 

Double check your income document and check to see if it is listed correctly. Sometimes, you may be getting a “phantom net loss” where you aren’t losing any money, but you think you are because of a mistake.  

Cleaning up your income document can help you isolate errors, or funds that are going towards something that may not be in use anymore. For example, you don’t want to be paying for an application license that is no longer used. It only takes a few minutes of your day to look through, but once you have checked it thoroughly then your answer is revealed.  

Look through your original bills and documents to verify the prices each month. Check if anything seems out of place compared to your other income documents. If you have no other documents then you should keep an archive to allow you to compare and check, as you should be spending roughly the same amount each month.  

Read Now: A Handy Guide: How to Decipher Bank Statement Codes


If it gets to a point where you are struggling to pay for employees properly, you can choose to hire one or two apprentices. That is, if your business is recognised and can provide certification upon completion of their apprenticeship. 

This not only helps younger people get work experience, but provides them with a recommendation from you and training on-the-job.  

Maintenance Substitutions 

There is also the problem where maintenance from different devices you may have could affect your overall net loss. Unnecessary devices that aren’t used at all will be best just to get rid of rather than keeping it, as this will minimise loss towards your bills. 

person working on his computer
Figuring out this stuff can be tricky but by doing it yourself you save a bit of money! 


Your net loss can be minimised, by paying attention and figuring out what is causing it. These are just a few ideas you can employ to achieve this. Hopefully this helps to manage your net loss, and reduce it as much as possible.

Net loss can be an intimidating effect to your income, but by composing yourself and thinking logically, you can avoid it.  

For more financial advice, feel free to contact us here at Count today! 

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