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Common Accounting Mistakes To Avoid

By | Accounting Mistakes, Business Advice | No Comments

Whether you own a large or small business, it can be easy to make accounting mistakes. It will not always cause a big problem to your business, however, its best to avoid mistakes altogether.

Coleman & Co will take you through all the common business accounting mistakes that are made and how to avoid them.

Disregarding Accounting Procedures

If you want your business finances to stay accurate, it is important to think like an accountant. By following regular accounting procedures, you can cut out accounting mistakes that could be made. Accountants use the best methods to ensure complete accuracy in all business finances and replicating these methods and processes will help you stay on top of finances.

Choosing to disregard basic accounting methods and choose your own processes can often lead you down the wrong path. Whilst this could be successful, you should always choose to set up detailed finances to manage bookkeeping and accounting.

Poor Organisation

Regardless of your current financial situation or the number of transactions you’re tracking, you must avoid poor organisation. Poor organisation will always lead to further mistakes, even if you feel like you’re in control of your finances.

This means you should keep receipts for all business transactions, tracking all income and expenses. Failing to stay organised could lead to legal issues if you fall behind with tax returns or paperwork. Organisation is key to ensuring all tax returns are accurate and that you always have access to all financial information.

Incorrect Figures

Whether you are a maths genius or struggle with the numbers, anyone can make mistakes with their figures. There is very little you can do to avoid a genuine error, however, using accounting software should always be a priority.

Even if the error made is minor, it can still influence your financial records and other financial features. Using accounting software will reduce the chances of errors being made, as well as picking up on any possible mistakes you have made. This may not prevent errors, but it could help you identify and resolve them quickly.

Missing Tax Deadlines

In 2018, almost 750,000 people missed the January 31st tax deadline. Too many businesses are failing to submit tax returns on time, which could lead to fines or investigations. This will only cause more problems for your business, making it important to always submit taxes on time.

Submitting your taxes on time really shouldn’t be a difficult process for most clients. Keeping your taxes organised throughout the year will help you prepare for deadlines and ensure taxes can easily be submitted without any issues. If you fail to record taxes throughout the year, it makes tax returns a big struggle and puts you at risk of missing the deadline.

Not Recording Small Transactions

It’s just a small transaction, so why does it need recording? Every business transaction needs to be recorded, regardless of how large or small it may be. Whether you are purchasing a pint of milk or a chocolate bar from the local shop, record these transactions. Not only could they build up, but it ensures your business finances are as accurate as possible.

Your small transactions may not be as simple to record as larger transactions if they are frequent. However, they are just as significant and as they build up, their grand total will need to be included in final finances. Without recording these transactions, there is no evidence of what has been purchased and how much individual costs were.

Contact Us

Another way to avoid accounting mistakes is to outsource to fully qualified accountants. Coleman & Co offer advice and a range of accounting services to all businesses in the Lisburn area. For more information on our services or to hire accountants, contact our team today. Call us on 028 9266 3599 or fill in our contact form to make an enquiry.

4 Benefits Of Keeping Accounting Records

By | Financial Records | No Comments

Whilst keeping accounting records is a legal requirement and essential for your tax returns, it also offers your business several benefits. Record keeping can be used for much more than just the simple tasks and can go a long way to transforming your financial performance.

Coleman & Co provide a range of bookkeeping services to ensuring accounting records are used for the best purposes. Additionally, we can advise you on what financial benefits record keeping could have.

Accurate Tax Returns

There are many benefits to record keeping, however, tax returns are still the essential reason for accounting records. You should keep your tax records for a minimum of five years after the 31st January in the relevant tax year. If your tax is submitted in 2018, these records must then be kept until at least 2023.

This could prepare you for many financial situations, including tax investigations from the HMRC. This may be unlikely to occur but investigations are possible if your tax returns are inaccurate or seem faked for any reason. Accounting records will also help you keep your initial tax returns correct, reducing the chance of errors occurring.

Quick Preparation

Whether this is for your end of year accounts or to create financial forecasts for stakeholders, a quick preparation can be beneficial for all business owners. Whilst financial forecasts can be useful, it can be time-consuming and difficult to make without looking at previous financial records. Using your accounting records, annual accounts can be created immediately with the correct finances.

Forecasts and other financial resources may take a bit longer but will be quickly created with previous records. This allows you to look at previous business finances and judge how the business will perform in the future, creating accurate financial forecasts. Spending too much time on this can be an issue for a business, but creating these resources can help.

Creating Partnerships

Many businesses can be successful using their own customers, staff and products. However, if you ever choose to work with other business and create partnerships, having accounting records available will always help. Showcasing your accounting records will demonstrate the success of your business.

It is important to have a strong financial performance and record this accurately and this could even lead to your business being sold or receiving a loan. If your records are kept accurate and stored correctly, it shows that finances are kept in good condition. With your business, there is little risk of your business having a negative cash flow.

Managing Growth

Most businesses have a plan to grow, whether this is in terms of profit or the number of staff and branches you have. But how do you know when your business is ready to grow? Accounting records must be kept if you are looking to grow and manage this growth in an effective way. Growing too fast or slow could lead to less profit and cash flow then you require. With growth at the right time, the optimum revenue will be generated.

Your accounting records will make a big difference in successfully managing your growth. With record keeping, you can judge when to invest in your business for growth and when to save. As every business grows, there can be many risks, so finding the right time to grow is essential.

Contact Us

Every business should keep their accounting records for legal purposes and can use them for a number of benefits. For more information on our accountancy services or advice on how to record keep effectively, call Coleman & Co. Make an enquiry on 028 9266 3599 or fill in our contact form today.

What Successful Accountants Do Differently

By | Accountants | No Comments

Not every business wants to outsource to an accountant. However, there are several things that accountants will do differently to a business to ensure that you save money and have a good financial performance.

Coleman & Co can assist all businesses in Lisburn and the surrounding areas. Our accountants can always provide advice and a range of services to assist in business finances.

Save Money On Taxes

Even if your tax returns are being filed correctly, there could still be a chance you are overspending. Whether you are struggling to submit tax returns accurately or on time, accountants will always give you an easy solution. Almost 750,000 sole traders missed their self-assessment tax return in 2018. With businesses being susceptible to large fines, outsourcing your tax can be a cost-effective option.

Running a business and organising your finances can be very time consuming, especially as a sole trader. Not only will accountants ensure taxes are submitted on time but with a great understanding on all accounting legalities, costs will be at a minimum when it comes to submitting business and staff taxes.

Meeting All Legalities

Whether this is regarding payroll, taxes or record keeping, accountants should know all the legalities. As a business owner, you are responsible for your business staying within the law regarding all finances. If you fail to do this, whilst you may ride your luck for a certain period of time, you will eventually be caught out and could face large fines.

Financial laws are constantly changing and you must always stay updated to prevent financial issues from occurring. Accountants will always be in line with the most recent legal requirements, no matter what part of your business this is for. Additionally, record keeping is often required to ensure accurate payments to the HMRC, with proof of business cash flow. Accountants will make sure your business records finances correctly and that they can be used in the future.

Planning Ahead

A big factor for every business is being prepared for the future and planning ahead. Whilst many businesses may plan for their business, the financial requirements are not always considered in these plans. An accountant can effectively plan and forecast a business cash flow, ensuring you have a good idea of what future financial performance will be required for growth.

When looking to grow your business, you will always require funding. Whether this is self-funded or you decide to borrow money, it is always best to have a financial plan in place. Once a plan is created, your business can set targets and goals to make sure this is achieved and you have the finances needed for successful growth.

Experience & Advice

Unlike many business owners, accountants have experience working with a range of businesses across a number of industries. Even if you do not require the services accountants have available, finding a successful accountant for the advice they can offer is vital. In order for your business to run successfully, your finances must always be controlled.

Accountants will always ensure this happens and can give advice to any business owners on how to successfully operate. Whether this is advice on creating budgets, payroll or bookkeeping, the best accountants will always know what option to take.

Contact Us

Coleman & Co can support and advise all business throughout the Lisburn area. When you require advice or accountancy service, our team is always available and can talk you through the work we can complete. Call us today on 028 9266 3599 or fill in our contact form to make an enquiry.

How To Successfully Grow Your Business

By | Business Advice, Business Growth | No Comments

Creating an effective plan to grow your business without any risks can be tricky. There are several ways that your business can grow without having to deal with constant problems. With the help of an account, you can maintain a good financial performance.

Coleman & Co can support all businesses throughout the Lisburn area. You will always be given advice regarding business finances and the best way to grow your business.

Limit Your Costs

The key to any successful business is keeping costs low. Whilst this may mean you don’t have the best revenue early on, it will prevent a negative cash flow. By regularly reviewing your costs and creating a budget that limits your spending, your expenses will remain low. A business budget will stop any sector of your business from overspending.

Your budget can also be tailored directly to your business needs. By comparing to previous month’s income, you can create an accurate budget that will always remain under income to give your business a healthy profit every month.

Set Targets & Goals

Whether this is for your staff members or for the entire business to achieve, targets and goals should be put in place. By creating achievable but challenging targets, your business will perform at a high standard. If you are looking to grow your business, without long-term goals there is nothing for you to achieve. By setting these targets, you should always have a better understanding of where you are heading.

Additionally, setting targets and goals can be good for your staff morale. Regardless of what industry you work in, not everyone will love coming into work. Having individuals and business targets can add competition, incentives and fun to your business. This can then lead to an improved performance so these targets are reached.

Save For Slow Growth

When growing your business, it is not always the best idea to continuously invest. If you have enough funds available to you, this may be a good choice, however, when working on a tight budget, it can be a much easier and smarter option to save up for a slower growth over a longer period of time.

Continuing to invest in the business is a positive mindset. Despite this, it makes you more likely to run out of cash and you should look at alternative methods. By saving regularly, it gives you the money you need for the future to invest and grow your business at the right times. This means you do not grow too quickly and as you grow, your costs will increase. By saving, it ensures you are prepared for all additional costs.

Spending prematurely on large items when revenue comes in may seem like a small risk; in the long-term, this could affect your business.

Record Your Transactions

In order to keep costs at a minimum and ensure the right payments are being received, you must record transactions. This will help you to create comparisons and accounts every year as well as tracking all customer payments.

You must keep on top of exactly what your customers are paying you and whether there are any changes. By having a good understanding of your expected cash flow every month or year, you can plan even better for the future.

Contact Us

If you would like advice from Coleman & Co or would like to discuss the services available, contact us today. We can help all businesses in Lisburn to grow successfully with the best possible financial performance. Call our team today on 028 9266 3599 or fill in our contact form to make an enquiry.

How To Keep Financial Records Accurate

By | Financial Records | No Comments

For most businesses, keeping financial records accurate is fairly important. Whether you have deadlines coming up or want to use finances for planning, they must remain accurate. We have several tips on the best ways to ensure complete accuracy.

Coleman & Co work with all businesses and individuals in Lisburn. If you require financial advice and want to keep financial records accurate, we can always assist.

Avoid Using Cash

Recording your finances can be a particularly tricky process, especially if you are unsure when finances are being used. Avoiding cash is often good advice as it means all transactions and recorded in bank statements and transactions. If your business regularly has cash out, it can mean you are unsure what cash has been spent on and also how much cash is leftover.

Cash may be used to purchase milk for coffees or ice lollies on a hot day. However, you should try to avoid using cash where possible, even if this means cutting down on treats. This will ensure financial records are kept accurate throughout the year and cash is not lost on small purchases.

Completing Tax Obligations

Rather than estimating your tax returns at the end of each year, monitoring tax regularly maintains the accuracy of financial records. You should always record tax returns throughout the year, ensuring the correct payments are made to the HMRC. Both business tax and tax deducted from your staff’s pay should be recorded all year round.

Failure to record taxes could lead to final tax returns being incorrect due to estimating certain costs. By recording tax returns throughout the year, this process is made much simpler and eases the pressure on accurate finances. You are less likely to make errors and therefore will avoid any potential fines.

Your business must record tax payments throughout the year from payroll and other transactions. This will always give you the financial records you need to maintain accuracy for all annual accounts.

Use Accounting Software

Whilst manually recording transactions and financial records is manageable, using accounting software can simplify this process. Accounting software ensures that all transactions and finances are recorded easily and can be used in the future. There is also a reduced amount of errors as accounting software will maintain accurate financial records.

Accounting software can also help with a range of other financial features and as it reduces errors, the accuracy of your finances will often improve. You should use the best accounting software for bookkeeping, payroll and other financial needs for maximum accuracy regarding all transactions.

Check For Errors

You may think all finances are completed perfectly first time. However, regularly checking for errors in balance sheets and cash flows could resolve many issues. This may not even be in the finances you’ve recorded but your actual business transactions. If you notice a cost or income that seems higher or lower than usual, checking for errors can provide a quick solution to maintain the accuracy of financial records.

Your finances cannot always be kept completely accurate and you should always be prepared to amend any possible errors. Any errors could have a knock-on effect for end of year accounts and tax returns. It is important bookkeeping is completed effectively throughout the year to avoid any finances and checking for errors can assist with this.

Contact Us

If you would like more information on the services we have available in Lisburn or advice on how to keep financial records accurate, contact Coleman & Co today. We can always give businesses the assistance they need regarding any issues. Call us today on 028 9266 3599 or fill in our contact form to make an enquiry.

The Importance Of Recording Transactions

By | Bookkeeping | No Comments

Bookkeeping is essential for every business and recording transactions correctly must always be done. Not only will this assist for legal purposes, but it could also prevent any disputes you encounter with your customers.

Coleman & Co can work as bookkeepers for all businesses in Lisburn, recording transactions correctly. We ensure your finances are always managed by our team to prevent errors from occurring.

Spending & Charging

The main reason for recording transactions is to ensure you are charging and being charged accurately. Nobody ever wants unwanted costs and this includes your customers. If you are paying fixed monthlies or one time payments, transactions should never be more than what you expect. With effective recording, you ensure transactions are correct and do not cause any issues.

This can happen to both big and small businesses, but should always be avoided. Most recently, “British Gas paid 32.65m in refunds”, according to BBC News, after overcharging customers. Whilst this is often worst-case scenario, it shows, regardless of who you are dealing with, payments can be incorrect.

Your own customers should always be charged the correct amount. In order to keep your expenditure low, constant recording and management of transactions is required.

Legal Record Keeping

In addition to keeping all charges accurate, recording transactions will have a significant contribution towards legal requirements and record keeping. When owning your own business, whether this is private or public, your finances must be recorded. Record keeping can help massively with a lot of business processes, including your tax returns.

Once the recording of transactions, invoices and other financial information is complete, you should store this securely. It may be required in the future and tax records should always be kept for a minimum of 5 years, giving you another reason to efficiently record and store details of all transactions. If any legal problems arise in the future, you can refer to previous transactions for both the HMRC and customers.

When recording transactions, there are several people you should be sharing your financial data with. By outsourcing to professional accountants, we have the best software available to make these records easily accessible for all clients, whilst maintaining security.

Manage Your Costs

Recording transactions helps with many business processes but can also improve your profit massively. By reducing costs and ensuring customers pay on time and the right amount, you will gradually improve profit. Customer payments should always be managed correctly to avoid cancellations and inaccurate cash flow forecasts.

This will also reduce your business expenditure in several ways. Recording transactions allows you to prepare finances for tax returns, therefore meeting deadlines and avoiding penalties. Your tax returns should always be completed across the year and well in advance of any deadlines, ensuring any minor errors can be altered before it becomes a big problem. Having all the transactions recorded will always make this process simpler.

Additionally, you can manage your outgoings much more effectively by tracking your transactions. If you notice any unusual payments or an unexpected rise in costs for the month, your records could explain this. By making comparisons each month, you can reduce your expenditure, identifying where money can be saved.

Contact Us

The importance of recording transactions should never be underestimated by a business. If you would like more information on the services we have available, speak to Coleman & Co today. We are happy to provide advice in addition to accurate and professional bookkeeping services for all businesses in Lisburn. Call us today on 028 9266 3599 or fill in our contact form to make an enquiry.

Why Accounts Preparation Is Essential For Businesses

By | Accounts Preparation, Financial Reports | No Comments

Whether you choose to do it yourself or outsource to an accountant, accounts preparation is vital. Completing this will prevent any payments being made incorrectly and ensures you know exactly what payments must be made.

Coleman & Co offer accounts preparation for all businesses, regardless of what payments must be made.

Dealing With The HMRC

The main reason that accounts preparation must be completed is to deal with the HMRC correctly. Completing accounts preparation of your annual accounts means the HMRC can see your finances and ensure the correct tax payments are made every year. There are several people who you should send your annual accounts to, including:

  • Companies House
  • Company Meeting Attendees
  • HMRC
  • Shareholders

Whilst your annual accounts will have different deadlines, you should ensure tax returns are never late or inaccurate. Once annual accounts are completed and sent off, this can then be compared to your tax returns, so that no errors have been made.

What To Include In Annual Accounts

There are several features of every annual account to give the HMRC and others a good understanding of business finances. All features of your annual or statuary account should be organised during accounts preparation. This then makes it an easy process when creating your annual accounts for the past year. There are several main factors to include:

  • Account Notes
  • Balance Sheet
  • Director’s Report
  • Profit and Loss Account

Any balance sheet that is included must also include a director’s name and signature. Therefore, the reliability of the account will be improved and it shows the accounts should be accurate. All finances within this account should be completely accurate. Not only could you face fines from the HMRC but shareholders will be unhappy with any false information they receive.

Accounting Records

Throughout the year, you should always be recording your accounts, making it easier to complete accounts preparation. All expenditure and income should be recorded, as well as any liabilities and assets you currently hold. You should also include details of your staff payroll information, including every financial detail.

By accounting for all financial records throughout the year, your accounts preparation process should be quick. You can easily look at your records from the previous business year before creating a report for your statuary accounts. Without recording throughout the year, accurate annual accounts are possible but more difficult to create.

It is always possible to keep track of your income and expenses throughout the financial year. If you are struggling to manage this, outsourcing your bookkeeping could be the best option to avoid inaccurate finances during the year.

Regular Statements & Accounts

Accounts preparation is not just useful for your end of year accounts and can be used at any time for your business. Regular financial statements can be created every month, meeting all legislative requirements and giving you the financial information you need. Month upon month, we can organise your tax records for the end of the tax year. Tax will always be calculated correctly by our team, regardless of which tax must be paid.

Accounts preparation can also be used whenever significant payments are made elsewhere or to keep shareholders updated. Your business must always be in control of finances, with accounts preparation being just one way this is achieved.

Contact Us

Coleman & Co can help all businesses in Lisburn regarding your annual accounts and accounts preparation. Contact our team today on 028 9266 3599 or fill in our contact form to make an enquiry. You will always receive a fast response from our team for any service you require.

Is Your Business Using Financial Reports?

By | Business Advice, Financial Reports | No Comments

Financial reports are a great option to keep your finances under control. Regardless of worries you have, reports will offer comprehensive detail of your financial performance, giving you the guidance you need.

Coleman & Co create detailed financial reports for all businesses. No matter what requirements you have, all finances will be included within statements and reports.

What Are Financial Reports?

Financial reports or statements should be used by every business, regardless of your current financial performance. The report will usually be completed on a weekly, monthly or quarterly basis. Therefore, you have a good understanding of your performance over a longer period of time. Financial reports can be used for several different needs, including:

  • Cash Flow Comparison
  • Current Cash Flow
  • Current Financial Condition
  • Financial Forecasting
  • Financial Results
  • Meeting Financial Targets
  • Outline Business Transactions

With so many regular financial transactions taking place, tracking your performance can be a difficult and time-consuming task. Financial reports will reduce the stress on your role, whilst still ensuring you have the necessary information available.

Creating Accurate Forecasts

Financial reports and statements will often evaluate your current financial performance, whether this is over weeks, months or quarters. However, financial statements will also help you plan for the future by giving you a good understanding of your financial condition.

Financial forecasting will create an accurate forecast of your future financial performance and how your cash flow could fluctuate. You should always consider the future of your business and if you notice profit margins falling, accurate forecasting could be essential to turn your business around.

Cash flow forecasts will detail your future spend and revenue. Having accurate forecasts will allow you to budget your business correctly and improve financial results going forward.

Setting Financial Targets

Financial statements are much more than an overview of your performance. You should always have targets and goals in place for how successful you want your business to be. Hence, if these targets are not being met, changes need to be made. Financial reports will identify areas of improvement and where targets should be put in place.

Once you have found your areas of improvement, financial targets can immediately be put in place. This can motivate staff and improve the overall performance of your business. Some businesses may have the perfect financial report but if your profit margins could be higher, a detailed statement will help you locate the main financial weaknesses for your business and how to improve.

Recording Transactions

Every business should be bookkeeping effectively and legally recording their transactions. Whether this is for tax purposes or your own benefit it must be done. Despite this, bookkeeping can often be quite a messy process.

Regular financial statements can help record all transactions on a frequent basis, whilst creating a clear layout of all business finances. Accountants will manage all business accounts correctly and prepare for any payments including tax returns to the HMRC. Having financial statements will ensure you have the necessary records to make accurate and on-time payments.

Your Annual Report

You choose how frequently you would like financial reports and this will always help to create your final annual report. Your annual report will give you an in-depth report based on the entire financial year and assist with tax returns and other payments.

Over the course of the year, you will not always be consistently performing. Due to this annual financial reports can identify your best and worst performance, with a comparison of your financial condition over the course of the year. This should help you improve for the next financial year by finding the cause of any financial problems you encountered.

Contact Us

Financial reports and statements can be used for all businesses and are a great asset for all. Coleman & Co will help all clients throughout Lisburn, ensuring you have the best understanding of your financial performance. For more information on our services, call us today on 028 9266 3599 or fill in our contact form to make an enquiry.

Serious Signs You Have A Bad Accountant

By | Accountants, Business Advice | No Comments

Getting an accountant is the first step for any business who wants to be successful. Whilst this shows good aspirations to keep your finances controlled, it’s important you choose an accountant of the right standard. If your accountant is constantly making mistakes, it could be time to move on.

Coleman & Co can help all small businesses and medical workers with their finances. Working throughout Lisburn, we provide a private and personal accountant, with accuracy regarding all finances.

Who’s Responsible?

A bad accountant is a big worry and not just because they might make mistakes in your finances. Your accountant making mistakes can have a big impact on your business. When dealing with the HMRC and other legal payments, your finances are your responsibility. Therefore if inaccurate and incorrect payments are made, you will be held liable, not your accountant.

This can come as a big shock to most businesses and could leave you completely unprepared. When you think your accountant is in control of your finances, it could end up with your business facing penalties. Finding a trusted, qualified and quality accountant is a priority for every business and you should never settle for mistake-prone services.

Mispresenting Qualifications

Whether your accountant is experienced or a fresh face in the industry, you should always choose a qualified team. If a business misrepresents their qualifications and accreditations in the accounting industry, they usually can’t be trusted.

We aren’t saying that all accountants without qualifications are poor, but it can put your mind at ease knowing your accountant has good knowledge of all finances. Even if they are qualified, but also claim to be members of other trusted bodies when they are not, this is never a sign of good accountants.

Illegal Practices

Depending on how you run your business, most people look to stay within the law regarding their finances. Whilst there are trips and tricks within the trade, accountants should never step outside the law even if it benefits your business. If your accountant condones bad practice or suggests schemes that seem too good to be true, tread very carefully.

Even if you think this could significantly help your business, it is not an option you should take. There are many ways to save your business money without having to do anything illegal. Accountants can be caught out and you should never go along with any bad practices. Finding accountants who adhere to all laws is a much less risky option for your business and avoids the possibility of large fines.

Careless Errors

Everyone can make mistakes, even accountants. Whether it’s a mistype or miscommunication, errors will occur. However, most accountants will make a quick correction of any errors and will not be caught out on regularly. If your accountant is constantly making mistakes, you should seek a new one before it impacts your business.

Careless errors can not only lead to fines or investigations, but they can also appear to be covering something up, which could lead to investigations or enquiries from the HMRC. Whilst this may not result in anything, it does waste time that a better accountant would have prevented.

Leaving It Late

As a business, you want to have good knowledge and understanding of your finances. If your accountant is always leaving things to the last minute, it’s difficult to grasp whether your finances are under control.

Accountants should always organise finances well in advance, whether this is for payments or tax returns. By recording your finances with effective bookkeeping, you will have the best possible knowledge of business finances.

Contact Us

If you are unhappy with your accountant in Lisburn, changing accountants should never be a struggle. Coleman & Co are happy to help all clients in Lisburn, offering a comprehensive service regarding your finances. Speak to our team today and call 028 9266 3599 or fill in our contact form to make an enquiry.

Are You Optimistic For Future Business Growth?

By | Blogs | No Comments

Business growth is a worry in the mind of every business owner and trying to achieve steady growth can cause several problems. Having your finances under control and a clear vision for your business is a priority, but how can this be done?

Coleman & Co offer advice to all businesses in Lisburn, ensuring you have support for all financial needs. We aim to help every client achieve successful business growth.

Improving Prospects

59% of business believe that their prospects will improve in the next year. However, this isn’t going to happen overnight and making a significant improvement takes strong financial management. With one in three business saying their borrowing will also increase in the next 12 months, how can you continue business growth without having to owe too much money?

Whilst borrowing may seem like the easy solution to the majority of small businesses, it is not the greatest long-term option. If you are successful, it could work perfectly, but it is a big risk if your business does not take off with injected cash.

Is Borrowing Best?

In the last year, 38% of businesses believe access to finance has been improved, making it easier to borrow. Regardless of whether you are a start-up or well-established business, borrowing will always have its benefits. However, this does have to be paid back and could rack up expensive debts for your business. Borrowing can be a good option if:

  • Investment Is Required For Revenue
  • Reduces Risk
  • Revenue Outweighs Investment
  • Start-Up Costs Need Paid

If you are borrowing for the sake of having more money available, without making a positive cash flow, borrowing is not your best option. Many businesses can benefit from borrowing money, but it is not the right choice for everyone.

Budgeting & Forecasting

To plan for future business growth, it is essential that you budget and forecast correctly. 4 in 10 businesses fail to make the 5-year mark, which can often be due to lack of planning. Small businesses can often find it difficult to continue selling the same products for so many years and failing to budget early on could lead to your long-term demise.

Cash flow can become a major problem at any point for a business and budgeting should be completed constantly. By budgeting every part of your business and limiting your spend on unneeded items, you can build the amount of cash you have available in the future. By saving on a regular basis, if cash flow does begin to drop, you have the funds to reinvest into your business without a problem.

Your forecasting will ensure you are prepared for any changes to your cash flow. Whether you notice costs rising or revenue falling, you can always remain organised when finances don’t match your expectations. By creating a forecast, you will be prepared for this situation. You can then budget your business accordingly, ensuring costs will not outgrow your turnover.

Invest In Your Business

Business growth will only occur if you continue to invest in your business. Whilst budgeting is important to prevent overspending, you should still plan to inject your money back in. This is much more productive, rather than having your cash sit and collect dust.

By budgeting effectively, you will always have the money you require to invest and improve your business. With regular budgeting, business growth is always guaranteed, ensuring you will always have money available to your business.

Contact Us

If you would like to discuss the services we have available at Coleman & Co, contact our team today. We are happy to give information regarding all your requirements, advising and managing all business finances in Lisburn. Call us today on 028 9266 3599 or fill in our contact form to make an enquiry.

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