It’s good to know that more and more people in the UK are opting to become self-employed and are starting their own business. It’s not just great for the people as individuals, it’s also great for the economy as a whole, as small businesses are the financial and economic backbone of any country or any region.
Unfortunately, whilst running your own business may be highly rewarding, it’s not as easy as it seems, and the accounting part can often be confusing. Especially for managers and owners who try to do everything themselves, there never seems to be time enough to handle all the accounts in a proper way. If you are one of many who find themselves struggling, then this one’s for you: here are some top tips for your start-up business’ proper financial management.
It’s all about cashflow
Ask any successful business manager and he or she will confirm that – regardless of what business you are in – it’s all about the cashflow. Hence, it’s the number one thing you should keep your eye on. What’s more, it’s the most important thing to understand (where it comes from and where it’s going), and you should have such an intrinsic understanding of it that you should be able to forecast at least a few months into the future.
Be punctual with the payments
This is not just because you risk creating animosity between you and your business partners if you miss the deadline – it’s for the good of your cashflow as well. In general, it’s wise to pay as late as possible so your cash reserves remain intact for longer, but make sure you stay on top of it.
Think about VAT
Make sure you register – that way you’re prepared for turnover increases.
Keep your lenders happy
Every business needs a cash-boost at times; and this is one more good argument for making sure that you pay all your debts on time. Keep your lenders happy.
Invoice promptly
It’s a hassle at times, but it’s a good accounting and bookkeeping practice. Do it right away. If you need help with this and your other accounting requirements, you can always turn to experienced central London accountants from such firms as GSM & Co.
Keep it simple but organised
Don’t make things too complicated – be organised and focus on a few things at a time.
Never forget that, as a business owner, you should be anticipating problems. Hope for the best, but anticipate problems down the road – talk to any business manager and that seems to be the main role of management; anticipating problems and learning how to handle them the best way possible. After all, if anyone could do it…It’s what makes owning your own business and being self-employed so rewarding, after all. Be organised and have a plan B and C ready. And don’t forget: you should have fun doing it.