Skip to main content

Top financial management tips

Half of accountants believe SMEs aren't in control of their finances and only plan for the short term, with many maintaining a 'batten down the hatches' mentality, a recent survey has revealed. Here are our tips for successfully managing your finances in the long term.
According to the survey by ABN AMRO Commercial finance, 48% of accountants say clients find their finances complicated and confusing while 40% say SMEs are burying their heads in the sand when it comes to their financial affairs.
But this doesn't need to be the case. With just a few simple changes and the right advice, you can get a hold of your finances.

Have a plan

If you don't know where you're going, you can't expect to know how to get there – or even when you have achieved your goals. A clear business plan will establish where you are and where you want to get to over the next few years. It will also stop you from having to react in a knee jerk manner to short-term problems.

This should be backed up by financial targets, budgets, profit and loss and cash flow forecasts.

Know your financial position

You should monitor the progress of your business regularly. On a daily basis, you should know exactly how much money you have in the bank, how many sales you're making and your stock levels. Every month you should review your position against the targets set in your business plan.

Cash is king

Profit may be sanity, but even the most profitable companies can grind to a halt if there isn't enough cash to cover your day-to-day costs such as rents and wages. Know the minimum your business needs to survive and do not go below this.

Keep your books up to date weekly

Don't be tempted to put off doing your paperwork, otherwise you not only risk falling behind and ending up in a mess at tax return time, but you could risk failing to invoice a customer and losing out on money.

Meet tax deadlines

Failing to meet tax deadlines for filing returns and payments can be a costly business as you'll incur fines and interest on those fines. What's more, these are unnecessary costs that can be avoided with a bit of forward-planning.
There are many ways that you can help reduce your tax liabilities and it's important that you get advice to ensure that you take advantage them.

Chase debts

Don't let unpaid debts lay idle. Debts are your money tied up in someone else's company and, unless you're a funder, we'd guess you're not in business to finance theirs. In the first instance, you can probably chase your own debts with well-written first reminder and final demand letters (available in our Credit Control Guide), but if you need extra assistance, you may need to use a debt recovery service.

Become more efficient, save money

Is your business running at its most efficient? Look at where you could possibly make cost savings by reviewing your bills. Call us on 0845 120 1722 to find out how Forum membership can help you to cut your costs.

Control your stock

Effective management of stock can improve your cash flow. By buying in only the stock you need, it ensures that your working capital is not tied up unnecessarily.

Get the right kind of funding

Smaller businesses traditionally rely on business overdrafts and personal funding when they need finance, but this might not be the best kind of funding for your company. Find out more about alternative sources of finance.

Spread your risk

Don't rely on a small number of customers too heavily. If they become insolvent or suddenly switch to doing business with your competitor, the impact on your business could be catastrophic.

Don't bury your head in the sand


Reference:http://www.fpb.org/hottips/811/Top_financial_management_tips_for_small_businesses.htm

Comments

Popular posts from this blog

Behavioral Targeting

What is Behavioral Targeting?
It  refers to a range of technologies and techniques used by online website publishers and advertisers which allows them to increase the effectiveness of their campaigns by capturing data generated by website and landing page visitors. When it is done without the knowledge of users, it may be considered a breach of browser security and illegal by many countries' privacydata protection and consumer protection laws.

Why Learn Behavioral Targeting?

How Behavioral Targeting will help my business Grow?



When a consumer visits a web site, the pages they visit, the amount of time they view each page, the links they click on, the searches they make and the things that they interact with, allow sites to collect that data, and other factors, create a 'profile' that links to that visitor's web browser. As a result, site publishers can use this data to create defined audience segments based upon visitors that have similar profiles. When visitors return…

Explore SMM tools to make you grow further and succeed in the digital world

Social Media Marketing (SMM) has arrived. We need to make use of some key tools here. We bring information about these to you.




1# Later – Instagram Scheduler Later is known as premium social media marketing tools to plan your visual content marketing.It’s an easy-to-use tool to schedule and manage your Instagram posts via any devices such as the computer, iPhone, tablet or android so that you can manage your account from anywhere. It has an ability to add team members and this is a keynote in this particular social media marketing tool.
Pricing: Free Plan: Available It has afree plan that allows you to publish up to 30 posts and 2 reposts per month on an Instagram profile. There are also a couple of things such as it helps to socialize with Facebook, Twitter, and other marketing tools as well.
Other Premium Plans: For Individuals: 9$ For Businesses: 19$, 29$, 49$

2# Oktopost – Social Media Management aimed atB2B Marketing Ocktopost is a social media management tool which is specifically design…

eLearning

Is there any time in our Life where we are not Learning...???


if that's SO then how come we all are not Inspired and Excited about Learning?


How to combine the two Fun and Growth while Learning?






In previous times, before the trend of e-learning resources like studying management techniques, individuals who wanted to create educational material either to offer or for use within an company created paper-based material like guides, and rich the program with movie and sound material. Of course, publication posting, is still a big business. And the idea of generating an income by developing knowledge to be used in an educational or professional setting is still interesting for many individuals.
The conventional education and learning where a undergraduate gets to fulfill a lot of person & return his or her concepts is something that is losing with the e-Learning factor. There is just no physical contact & everything is just, exclusive when you discuss of e learning So, it is al…

Hacking-free

The Internet is the new lifeline to people and social networking sites have become intensely popular. This is the time when websites and blogs are the new identity address. It acts like an equalizer and eliminates geographical restrictions over emotions or opportunities. However, even this great system is not devoid of problems. The most intense threat in this case is hacking. What is hacking?  It is basically a technological process using which people, other than the owner of the blog, social networking page or website, might get access to these pages without the owner’s permission. With the various tools and computer language scripts that are being developed, Hacking is also gaining momentum. Here we can attempt to enumerate some anti hacking tips that might help people to prevent their blogs from hackers. ·    Update – New version of the blogging software is released to overcome the problems in the older version. Get in the top of the game by constantly updating your blog page to the…

Obama success via Link-spirals

How were Obama & Romney Competing in Digital space


2008 was the hallmark for use of Technology in Politics.Worlds Politicians shifted their attention to Social-media not because they were fancied by it but Politicians understood their presence and engagement with the new breed of citizens via Digital medium is Vital.

One of the finest mix of digital communication channels that even the techo-wizards are wondering TheDigital worldknows of Link wheel a normally used slang in digital-domain for linking their website with their own online properties by wheel-spoke arrangement.
The Secret is now out its not the Link Wheel but Link Spirals that Mr. Obama and his Genius Designed and Executed systematically. Politicians are now devising the Digital strategy as an Integral part of their Campaigns to ensure their win in polls.
Online Consultants have conducted enough Deep Research and have come out with the Best Practices Guide for Politicians going for Polls which enumerates detailed Do's a…