All business owners look to shift into a phase of growing revenue and becoming profitable after the stressful period of establishing a business. But new business opportunities and growth can come along with drawbacks in case of inaccurate financial management in Yeovil. You may not see a rising graph in your profits with the increase in turnover, making it difficult to handle. Here are some steps to help you with managing your finances.
Steps For Better Financial Management
Review The Different Types of Ownership Structures
You may be operating out of an inadequate structure which can affect your tax liability, degree of exposure to risk, filing requirements and ability to access finance. You must review your structure, as changing it may aid you in developing and improving the way you run your business. This will be good for the growth and scaling of your business.
Strategies for Sustainable Growth
You need to change your mindset as soon as you enter the growth phase. You must focus on three areas of strategic direction. Develop a strategy to scale up your business sustainably.
- Find your vision and mission.
- The objective behind establishing the business.
- Where do you want to see your company in another five years?
These factors will help you take the right steps to achieve your goals. You should also review your cash flow regularly for proper investment decisions and payments.
Required Credit Control Systems
Having the necessary credit control systems to improve the chances of timely payment is essential to handle your cash position. We understand you cannot be certain about everything in your business, but proper planning can reduce the risks. It will reduce the chances of you ending up with multiple bad debts.
What do you need from your management accounts?
The management accounts will be important to understand how your business is doing. Though they aren’t mandatory, they are crucial to providing you with knowledge for better informed strategic and business decisions. What you need them to report depends on the industry type. But, they will have specific financial information usually compared to:
- Forecasts
- Historical Trading
- Key performance indicators
Explore Tax Relief Areas
Consider and explore several business tax relief areas like R&D tax relief, SEIS & EIS, the patent box etc.
Whites Chartered Accountants offer end-to-end accounting services and can assist you with financial management in Yeovil. Contact us today or check our website for more information.