What Are the Impacts of Unplanned Expenses on a Business?
Unplanned expenses can have several adverse effects on a business:
1. Cash Flow Issues: Unexpected costs can strain cash flow, making it difficult to meet regular financial obligations. 2. Operational Disruptions: Equipment failure or legal issues can halt business operations, leading to loss of revenue. 3. Increased Debt: Businesses may need to take loans to cover unexpected costs, increasing their debt burden. 4. Stress and Morale: Constantly dealing with unplanned expenses can lead to stress and lower employee morale.