Key Financial Aspects to Track Within your Business [4 KEY ASPECTS]

Financial Tracking

It’s so easy to get caught up in the day to day running and busy-ness of your business, and you can fail to keep an eye on the financial aspects. This has been the most common reason that businesses fail early on. Financial tracking is key!

This is where we can help, working with an accountant like our experienced team at Spectrum who can guide you through your numbers, whether you are a new or established business, can pay dividends. Numbers, figures, key performance indicators, whatever you call them, your business needs them.

Read on to see what financial aspects you should be tracking.

Income:

You need to have enough cash coming into your business to cover your regular outgoing otherwise it won’t be long before your cashflow starts to falter.

At Spectrum, we use a Cloud accounting software that will allow you to keep track of revenues in real-time.

This helps to ensure you have visibility of cash flow by providing data that tells you where you are now and enables you to set reasonable expectations about what you can expect in the near and more distant future.

Part of this is of course profitability.

Maintaining a good profit margin is the single most important thing you can do as a business.

Keeping on top of this number is critical to your success.

Expenditure: 

You also have to keep an eye on your outgoings, both fixed and variable running costs need to be tracked.

They will affect the profitability of your business and more so they will impact your cashflow.

In particular variable costs, that can rise due to increase in stock levels or number of staff, and typically outpaces the rate at which you sell your products and receive payment.

Online cloud accounting can help you monitor outgoings can flag any unexpected spending.

We will help you to gain a full understanding of your accounting at a level and pace that suits you.

In many businesses one of the main outgoings is staff costs, Spectrum have many years of experience in payroll and can help ease the burden of running an inhouse payroll system.

Bank balance:

This may sound obvious but knowing what you have in the bank at any one time will help with decisions about the first two points.

It helps you plan, and it helps you stay on top of your business situation day by day.

This is your most basic number.

External influences:

Working with Spectrum will mean that you have visibility of PAYE, VAT returns – and Making Tax Digital is just around the corner – Brexit may impact your business, or it may not, but with the support of an approachable, reliable and proactive accountants you have a better chance than most of keeping ahead of the game.

When approaching investors they want to see you have a financial understanding of your business, the ones who impress are the ones who have the numbers at their fingertips.

Spectrum can help you have those figures to hand when required.

Get in touch to discuss your numbers.

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Categorised in: Self Assessment, Small Business

This post was written by Daisy Vowles