When you are on the cusp of growing your small business, it is important to consider the financial implications and current financial position of your business.
Here are our top 5 tips on how to get your business financially ready for your next steps:
Get your business plan ready.
A business plan shows you where you are and where you want to be. The financial detail your provide in your business plan is essential for knowing how possible each step is and when is the best time to take action. Reflect on past business plans you have completed. It’s a great idea to show your accountant your business plan so they know what you are aiming to achieve. They can then plan your taxes and accounts accordingly.
Ensure your processes are efficient.
Clients paying late, not knowing what your financial position is, late payroll – all these factors hinder your efficiency and financial performance. When getting your business ready for growth, you need to make sure all of your processes are working efficiently and are in place. This will ensure you are financially ready to take the next steps.
When considering your financial position make sure that you specifically consider your cashflow! We’ve mentioned it so many times, but it really is important that a business has a healthy cashflow before expanding. You should have an accurate understanding of the cash available in your business. You can find our top tips for maintaining a healthy cash flow in our blog here.
It is imperative that you have a clear record of your incomings, outgoings and up-to-date accounting records. The best way to do this is to have your bookkeeping done by a qualified bookkeeper. You can find out more about the importance of bookkeeping and how it can benefit your business here.
There are many digital accountancy systems you can use to help you maintain your accounting records and bookkeeping. Are you wondering how to include digital accountancy into your business? We wrote a great article about exactly this in the latest edition of Your Business here.
Meet your deadlines!
Failing to make loan repayments, tax returns and general accountancy deadlines can have a huge impact on your business, and can indicate you are not ready to grow your business financially. Late/missed payments can incur fines and interest and other unnecessary costs that all small businesses should avoid!
We hope these top tips have helped you identify areas you can improve to make sure your business is financially ready for growth.
If you need any advice on any of the topics raised, or would like to discuss any accountancy queries, please do not hesitate to contact us at Surrey Accountancy Limited.