We could all do with a financial check up every now and again, so here are a few tips from Bolton based Bentley’s Chartered Accountants to help you keep your business in good financial shape.
- Cash is the number one reason why businesses fail, so understanding the cash flow in and out of your business is vital for survival. Make regular cash flow projections to help you to identify relevant indicators for how your business is performing.
- Businesses also need to know where they are now, so updating bookkeeping records is a vital task. Keep on top of your accounts each month to provide early warning of future difficulties.
- Keeping in regular contact with your bank will give them a better understanding of your business and sector. Alerting them to potential difficulties at an early stage will also create more time to identify solutions.
- Make sure you are paid regularly. One of the most common reasons for your clients not paying you is a query over the amount owed, so agree the charges in advance and ask customers to pay in advance, if possible.
- Pursue outstanding debts with phone calls and letters, as clients will often pay those who are the most persistent.
- Think carefully about accepting every client/contract and consider how it will generate cash and add to your profits. Be wary of taking on non-profitable work which could stand in the way of you considering more profitable opportunities.
- Look at the bigger picture. Making time to look at how the business is performing, what you hope to achieve and how you plan to do so will give you a clearer focus for the way forward.
- If you are having problems or need advise with any financial issue affecting your business, seek professional help as soon as you can.
For more information about Bentley’s please visit www.bentleys-accountants.co.uk