Effective and meticulous financial planning is integral to good business. No business can succeed without a financial structure that is airtight and works to make the business more profitable. If your company is a startup still finding its way in the often perplexing world of professional money matters, have no fear. By adhering to these three golden rules of business finance, any SME can propel their business to greater profitability – and keep the books tidy in the process.
1. Keep it organised.
Your business’s finances are fundamental to its success – making diligent organisation a key part of your financial structure. It’s not only of massive benefit to you to keep bills, receipts, expenses and income organised, but also your legal obligation as a business owner to be transparent with your financial matters.
Cash flow is everything – so make sure to keep a constant focus on your expenses, and factor in any liabilities as well as forecasts of future payments. Organising your finances becomes infinitely easier with innovative business apps and basic accounting software designed to streamline the process. The ease of access afforded by these software solutions helps small businesses to stay on top of financial matters without the associated headaches. With apps for invoicing, expense reporting and much more, the tech route could be the way forward for small businesses managing the financial basics.
2. Take precautions.
Security is an absolute must for small businesses – with financial precautions helping to protect and sustain and grow companies. A short-term perspective could spell disaster for your enterprise – SMEs need to keep an eye on their future finances for the future of their business.
Being paid on time is a non-negotiable in business, with your own payments reliant upon your clients’ payments to you. Take an up-front approach to payment terms and procedures with your customers and clients, making payment as easy for them as possible.
You may also want to consider transitioning to a corporate entity. If you’re operating as a sole proprietorship or partnership, you’ll be exempt from the costs associated with tax returns and corporate documents – but incorporating your business could protect you from some considerable financial risk and save you money on taxes in the process.
3. Ask the experts.
Ultimately all businesses will need to hire a professional – accounting, like legal services, can be a complex area and its complexity can grow as your business expands. In order to ensure full transparency, legal compliance and financial protection – seeking the advice of an accountant is the recommended approach. Professional accountancy firms offer small business the support and expertise to help the company thrive financially. An accounting service may include anything from bookkeeping and tax returns to growth strategies – and with their help, you can be sure that your finances are perfectly balanced and meticulously organised.
With a professional accountant, a bespoke service is guaranteed – ensuring that your business’s finances are the ultimate priority. With their help, you can tick all the necessary boxes and reap the rewards of your diligence.
Are you on the hunt for a financial expert with the skills to benefit your business? Simply fill in your email address below and you’ll get access to expert financial advice and proven money-saving methods for your business, courtesy of the professionals at Insight Accountancy.
If you’re looking for a small business accountant, Insight Accountancy is the solution for you. Based in Newcastle upon Tyne, we offer a bespoke service covering everything from payroll to account audits. Click here to find out more about our full range of services or get in touch to make an inquiry.