Are you building your business on firm foundations? In our January blog we talked about the key financial indicators for your business. Getting a business off the ground is a huge achievement but establishing your finances on a solid footing is critical to whether an enterprise ultimately succeeds or fails. Here are three things to keep in mind when planning your business finances.
Choose accounting software that makes sense for your business:
Cloud accounting software can integrate with bank feeds, invoicing, payroll and many other features accessed on a desktop, tablet or smartphone. Particularly with HMRC moving online with Making Tax Digital and other digital initiatives cloud accounting must be the principal medium to work in. Spectrum Accountancy solutions work primarily with Xero and Receipt Bank but can support other systems as well. The main benefit of cloud accounting is the increased ease of collaborative working. We can access the same set of records that you can in real time, as can HMRC when required.
Work with professionals.
Some businesses start up with a great idea and an off the shelf accountancy package. Spectrum Accountancy Solutions are committed to providing practical and professional advice to both businesses and individuals. It is important to have another eye on your business. Someone who can bring an objective view to your finances and help you avoid the potential pitfalls that focussing on the daily operation of your business can lead you into. Get in touch and talk to us about how we can help.
Stay organised and plan ahead.
If you have carried out the first two suggestions, then you are a long way to achieving this goal. Monitoring your finances and projecting future revenue and expenses will enable you to make better long-term decisions for your business. Without this information, planning ahead can prove challenging. If you aren’t looking at the future of your business, you could be taken by surprise. You will be able to mitigate unwanted surprises if you stay have plans in place to avoid them, even if unexpected expenses do rise.
The reality is that many business owners do not keep track of their finances. Whether you know it or not, this could mean missing out on opportunities to minimise your expenses and maximise your profits. The most important of our three key pieces of advice has to be work with a professional. Spectrum can help you have the figures you need at hand when you need them. Get in touch to discuss how we can help get your business on a firm footing.
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This post was written by Daisy Vowles