Whether you are the owner of a small business or start-up that is just getting off its feet; as a business finance specialist we know how easy it is to get lost in the every day and as a result, lose track of the bigger picture. With the first month of the New Year drawing to a close, now is a fantastic time to take a step back and have a look at some of the crucial aspects of your business to ensure that you are indeed starting as you mean to go on.
Your financial profile is a key player in the success of your business however, with a million and one other things on your mind we know how easy it is to slip up. Before it gets too late; re-evaluate your financial situation to ensure that it is on the right track to avoid getting yourself in a rather messy situation.
There are a number of areas of your finance that need to be carefully managed however, my personal experience has taught me that the below are the most crucial and unfortunately most neglected…
- Bookkeeping- With a New Year well underway your records from 2013 should be carefully filed away and a new set of records should have begun. From incoming and outgoing expenditure to payroll details and any unexpected charges- how have you been doing with keeping a record so far? If you have been maintaining your books vigilantly then fantastic however if you haven’t even started then odds are that you may continue to neglect this. Maintaining solid financial records is not only important but a legal obligation so if it gets too much considering outsourcing your bookkeeping services.
- Profit and Loss- A lot of companies often seek assistance from accountants when they find themselves in a financial mess but avoid that by taking charge before it is too late. Knowing what is coming out and what is coming in will help you maintain a good idea of how well your business is performing. A weekly profit and loss sheet is a great way to always stay on the ball and avoid any nasty surprises.
- Cash Flow Management- Do you have a breakeven number in mind? For every business there will always be a specific amount needed in order to cover standard charges and employee fees and ultimately stay afloat. By regularly managing your cash flow, ensuring that you are not over spending can help you keep control of what stays in your account. Look at how much you have spent so far this year? Have you noticed anything that is becoming a regular, costly charge? Getting control of this sooner rather than later will give you a better chance of a successful year.
Do you know every detail of your business finances? Are you the business owner with the ideal habits and the determination to keep on top of all areas of your financial situation? If not then now is a good a time as any to get control, before it is too late.