6.3Best practices & pitfalls
The essentials in 30 seconds
- Golden rule: sound management is first LUCID (result ≠ cash, known costs, anticipated deadlines), then optimised.
- Do: watch cash as much as result, keep accounts as you go, know your costs, steer on a few interpreted indicators.
- Never do: confuse profit with cash, compute tax on the accounting figure, budget an employee on net, sell without knowing your costs.
Rachid thread — 1 year on: three habits that pay
One year on, Rachid reviews: what counted most was not a technique, but three habits — watching cash before result at each month-end, filing every document on receipt, and checking the real cost before any new price. And his biggest trap narrowly avoided: signing a big order without calculating its margin on a rush evening.
Pick a single habit to anchor in your management routine, then move to the next.
The do's and don'ts of sound management
The difference between a well-run company and one that endures comes down to a few habits. Here are the ones that come back most often.
✓ To do
- Watch the cash as much as the result (cash is king).
- Keep your accounts clean throughout the year (not only at the closing).
- Know the real cost of your products/activities before setting the prices.
- Anticipate taxes and deadlines to prepare the cash flow.
- Steer with a few key indicators, interpreted (benchmark, norm, trend).
- Build a budget and a cash plan, then track the variances.
- Always distinguish turnover, profit and cash.
- Rely on the chartered accountant and understand what he produces.
✗ To avoid
- Confusing “being profitable” and “having money”.
- Believing that tax = rate × accounting profit (it is the taxable result).
- Budgeting an employee on his net or gross (forgetting the employer contributions).
- Selling at a loss for lack of knowing your costs.
- Accumulating dozens of ratios without interpreting them.
- Letting inventories and receivables balloon without financing the WCR.
- Setting a budget then never comparing it to the actuals.
- Believing that the software understands accounting on your behalf.
Ready-to-say script — checking your decision before signing (30 s)
“Result or cash: which one am I looking at? Real cost known? Break-even and margin calculated? Taxes and deadlines anticipated? Budget variance checked? If any no, I cost before signing.”
Copy-paste template — monthly self-check (8 questions)
THIS MONTH (yes / to improve):
1. Cash: did I track cash as much as result?
2. Accounts: documents filed and accounts justified as I go?
3. Costs: is my products' real cost up to date?
4. Deadlines: taxes and deadlines anticipated in cash?
5. Indicators: are my few ratios interpreted (trend, norm)?
6. Budget: variances vs plan analysed and fixed?
7. Distinctions: turnover, profit and cash well separated in my head?
8. Accountant: did I understand (not just receive) what he produced?
MY PRIORITY NEXT MONTH (only one): ...Small business / tight budget
One habit per quarter is enough: cash tracking first, the rest after.
Algeria SME
Fit habits to local deadlines: anticipate tax and social payments with the chartered accountant so you never endure them.
Remote / hybrid
The #1 discipline at a distance: documents scanned and forwarded without delay, no pouch waiting for the trip.
Cross-cultural
Check the accounting and tax obligations of the country of establishment rather than assuming they look like yours.
48h challenge — apply tomorrow
Fill the monthly self-check above on your current management and pick a single priority to anchor in your routine.
- I know the 8 reflexes to adopt and the 8 traps to avoid.
- I have filled the self-check and picked one priority.
- I did the 48h challenge or scheduled its date.
Before signing a big order, which reflex best protects Rachid?
Golden rule: sound management is first LUCID (result ≠ cash, known costs, anticipated deadlines), then optimised — understanding comes before tools.