Destination: financial freedom

Picture the scene. You've put aside a day to catch up with your business finances. So you pour yourself a coffee and open up Excel. Then, BOOM! You suddenly find yourself thinking about how dusty that space behind your cooker must be. Before you know it, you're on your hands and knees, scrubbing and polishing. While you're on a roll, you may as well turn your attention to reorganising the cutlery drawer and, hm, couldn't the taps on your sink do with a good polish?

Now, don't get me wrong, cleaning is NEVER my idea of fun. But when it comes to facing up to my business accounts, it's amazing how long-neglected tasks suddenly become top priority.

I wonder how many other business owners feel the same? Anecdotal evidence tells me I am not alone in burying my head firmly in the sand when it comes to my finances. And that is why I was so delighted when Laura Sterian agreed to appear on Tour Pro Talks last week.

Laura specialises in helping business owners in the travel industry to navigate the complexities which surrounding the sector's accountancy requirements. Her aim? To help her clients gain back time and experience the peace of mind that comes with knowing that their finances are as they should be.

It certainly was an illuminating 30 minutes, and we had some great feedback from our lovely audience. Don't worry if you missed it, you can catch up here. Pushed for time? I've picked out 12 top tips from Laura's words of wisdom, and you can find them below.

1. Understand industry requirements

Make sure you're clear on specific regulations like the Tour Operators Margin Scheme (TOMS) and ATOL certification, which can impact your financial responsibilities and compliance requirements.

2. Regularly touch base with your accountant

Don't just reach out to your accountant during the tax season – show them some love all year round! Regular interactions can help you stay on top of your finances, understand your tax obligations, and make informed decisions throughout the year.

3. Keep accurate financial records

Use HMRC-approved accounting software for accurate bookkeeping. This way, you'll be prepared for financial reviews. You'll also be informed about important thresholds like VAT registration, which will help you avoid unexpected fines (ouch!).

4. Plan for financial stability

Develop a robust cash flow management strategy. Regular cash flow forecasts can help you anticipate financial needs and adjust your business operations accordingly – very important for maintaining stability during slow periods.

5. Keep out of unnecessary debt

Focus on operating within your means and avoid over-relying on debt as a financing option. Not only is debt a huge source of stress, it can hinder your business growth too.

6. Stay informed about compliance and regulations

Keep abreast of all compliance requirements relevant to your business, such as VAT and ATOL. I get it, there's always going to be something more fun to do! But investing time learning about this will save you time and money in the long run.

7. Use financial forecasts and scenario planning

Carry out financial forecasts and scenario planning on a regular basis, as this will help you to prepare for the whole gamut of business conditions. It will also help you to manage your resources more effectively and plan for future growth.

8. Boss your own financial decisions

Educate yourself on financial management principles that can significantly impact your business. Simple, effective strategies like setting up dedicated savings for taxes and major expenses can help you feel so much more in control.

9. Monitor financial metrics

Regularly track critical financial metrics such as turnover and cash flow. This will help you understand how close you are to reaching VAT thresholds and assess the overall financial health of your business.

10. Choose your accountant carefully

Choose an accountant who doesn’t delegate your concerns to less experienced staff and who offers direct, responsive communication. A good accountant will help you to make clear financial goals and ensure that you remain on track to meet those objectives. Ideally, your accountant will understand the travel and tourism industry, as this means they'll be able to help you navigate the unique challenges and opportunities of your sector.

If you'd like to find out more about working with Laura, you can do so here.