Defeating the 10 Evils of Business Finance: A Dussehra Special for SMEs & Startups

CA MAYANK , Last updated: 03 October 2025
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Introduction: The Spirit of Dussehra in Business

Dussehra celebrates the triumph of good over evil - when Lord Rama defeated Ravana and restored balance.In business, especially for SMEs and startups, financial mismanagement can become the "Ravana" that silently destroys growth. The key is discipline, foresight, and timely action.

This blog explores the 10 financial evils that SMEs must conquer to ensure sustainable growth and financial stability.

Defeating the 10 Evils of Business Finance: A Dussehra Special for SMEs and Startups

1. Delayed GST & Tax Filings

Just like Ravana's arrogance led to his downfall, ignoring tax deadlines can cause reputational and financial damage.

Impact: Penalties, interest, and blocked ITC.
Solution: Create a compliance calendar and automate reminders.

2. Weak Cash Flow Tracking

Without monitoring cash flow, businesses run blind.

Impact: Liquidity crunch, inability to pay vendors/employees.
Solution: Maintain a rolling 3-month cash flow forecast.

3. Mixing Personal & Business Finances

Blurring the line between personal and business accounts creates chaos.

Impact: Tax mismatches, loss of credibility with lenders/investors.
Solution: Open a separate bank account for business and stick to it.

4. Ignoring Compliance Calendar (PF, ESIC, TDS)

Skipping statutory compliance is like leaving a weak spot in your defences.

Impact: Hidden costs, employee disputes, legal notices.
Solution: Track and file all compliances timely.

5. No Budgeting & Forecasting

Operating without a financial roadmap is like going to war without strategy.

Impact: Overspending, inability to measure progress.
Solution: Prepare annual budgets and review variance monthly.

6. Dependence on One Customer

Putting all your eggs in one basket is risky.

Impact: Losing one client can collapse your revenue stream.
Solution: Diversify clients and expand markets.

7. Poor Documentation & Record Keeping

Messy records = lost opportunities.

Impact: Trouble during audits, inability to raise funds.
Solution: Maintain clean books, invoices, and contracts.

8. Lack of Internal Controls

Weak systems encourage fraud or financial leakage.

Impact: Losses, employee mistrust.
Solution: Set approval limits, regular checks, and audits.

9. Over-Leveraging Debt

Debt can accelerate growth, but overuse leads to collapse.

Impact: High interest burden, bankruptcy risk.
Solution: Balance loans with healthy cash generation.

10. Not Seeking Expert Financial Advice

Ravana underestimated Lord Rama - SMEs often underestimate the value of financial guidance.

Impact: Slow growth, missed opportunities.
Solution: Engage experts (CA, Virtual CFO, advisors) for strategic clarity.

Conclusion: Victory of Discipline over Disorder

Just as Dussehra reminds us that arrogance and disorder always lead to defeat, SMEs must remember that ignoring financial discipline can endanger the entire enterprise.

By defeating these 10 evils of finance, businesses can: