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

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…

The future is AI and Digital Marketing – Learn it NOW to become successful !

The digital world has arrived.  We invite you to learn what is required in the digital world. For this is something we all need to know to succeed in the new world we inhabit.



The technical world is moving towards Artificial Intelligence (AI), Natural Language Processing (NLP), machine learning, and chatbots. This is why it is important to know all about this technology is, where it’s going, and what impact it will have on digital marketing as a whole.


What is AI
AI is the concept of machines undertaking tasks in a way that we humans would consider intelligent. Or AI is when a machine can undertake a task as well, if not better than a human would.

Machine learning is a subset of AI, whereby we provide a machine with data and it then learns on its own. Instead of being programmed to do something, machines are given the information they need to do it themselves. So, machine learning is one of the applications that is driving AI development. Here, it is crucial that we get the machine learni…

AI and the tools it creates in the digital world to enable all to succeed

AI is here to stay and there are many tools making use of it. 

Let us understand and Explore the power of AI.

There’s a lot of hype surrounding artificial intelligence (AI) and machine learning, but there’s no denying the technologies are going to shape the future of marketing. In fact, they’re already powering most of the tools we use today – even if we don’t realise it.

Google, Facebook and just about every platform we use to connect with consumers are knee-deep in these technologies and the list of marketing AI tools is rapidly growing. We show you some tools that make complete use of AI


#1: Import.io Import.io allows you to import data from any web page, even if the data you’re after is hidden behind login forms or other elements. You can then compile this data into spreadsheets, visualisations or machine learning algorithms. With this data on your side, you can do anything from competitor price research to analysing all of your customer reviews to pinpoint the most important areas for …




Connect us with