The Queen Accountancy's:
Helen Queen
More than accounting – financial management that drives your business forward. Queen Accountancy is your one stop shop for all the financial insight you need to grow your profits and stay in control
As a small business owner, there are a lot of things that you have to think about.
One area where many entrepreneurs fall short is their finances...I think you'd agree that's pretty fundamental to HAVING a business! So, what to do and what not to do? That is today's question. Here are some of my quick fire tips, I'd love to hear what you think!
??DO Your Research
One of the most important things that a small business owner can do is : conduct research. Don't be afraid to call people up and ask for advice on how they handled certain financial matters when running their businesses.
You will likely find that many successful entrepreneurs are more than willing to share tips with you because they truly want your company to succeed.
It's most definitely worth seeking the advice of an accountant/consultant/advisor, because they will have a lot of insight to offer that you might not be aware of. They can help you to prepare for the unique financial challenges and pitfalls of the market you are entering, and understand the position that your company is in. Do your homework though!
??DON'T Overlook Your Business Plan
Don't let yourself fall into the trap of thinking, "I don't need one because I am only starting out." Even if you are an extremely small company that is just starting off, a business plan will help you to stay organized and remain on top of your finances.
?It's important to have a written document so that everyone who works with you knows where the money is going and what they can expect from your budget.
Complete transparency and clarity is crucial, especially at a time in your business where it can be easy to be shaped by client demand and sector trends.
As time goes by, new opportunities may arise for expansion, new hires, or other changes in the company. A business plan will help you to keep track of all these things so that you can make good decisions for your company's future.
??DO Create a Realistic Budget
Make sure you know where you're money is going throughout the year! Be sure to keep a detailed record of income and outgoings, debts (along with interest rates) and what you're able to save. It's easier for you and your accountant, who can suggest a range of different software that will save you time by making this more efficient. Just be realistic!
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??DON'T Forget to Track Your Expenses
Don't let yourself be blindsided by spending too much or underestimating income. You should always have a plan for your money and track every expense so that you know exactly how much you’re spending. The more clarity you have with your account, the better.
??DO Have a Tax Plan
I cannot stress the importance of this enough! NO ONE wants an unexpected HMRC surprise!
You should meet with your accountant/consultant/advisor and create an effective strategy for how you will pay taxes throughout the year so that everything runs smoothly and on time.
?By doing this, you will avoid late fees or penalties from the authorities which could damage your company financially in?the long run. On top of this, careful tax planning will also help you to save money on your bill and take full advantage of any incentives and breaks available.
??DON'T Try to Do It Alone
In the beginning, it's more than likely that you'll be wearing all the business hats entirely on your own. From marketer to manager, accountant to sales person. So before things start to become too overwhelming, consider what you can outsource and entrust to someone else. One of the first things you'll start to consider is the finances. It's better to hand this responsibility over to a professional who will be able to apply their years of training and experience to the role. This not only puts your business in better financial shape, but also frees up your time and attention to focus on growth and client generation. Remember, you cannot be in two places at once, and your time is extremely valuable.
Use it wisely!
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