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Options When Your Business Is Running Out Of Money

By | Business Advice | No Comments

Running out of money is a very real possibility that can happen for businesses of any size or industry. Recovering from this is much more difficult and it is important you consider all the options that are available if your business does start to run out of money.

Coleman & Co support every business throughout Lisburn and the Northern Ireland area. If you are encountering financial issues, our accounting services can get you back on track.

Cut Cash Expenses

Although there are several steps to take when running out of money, your first priority should be to cut your cash expenses. By doing this, you immediately reduce some of the costs your business has and prevent your total profit getting even lower than what it already is. There are several costs you cut which include:

  • Cutting Staff
  • Negotiating Suppliers & Resources
  • Rent

None of these options are particularly fun but may be necessary to give yourself the break you need to get back on track. For many businesses, cutting back on the number of luxury items you have within your business can make a big difference and help you significantly lower costs. Make sure not to invest too much into items the business doesn’t actually need.

Non-essential assets could even be sold to raise some revenue at the same time cutting your fixed and running costs.

Quick Payments & Invoices

Many businesses will take payments immediately after the point of sale. However, if you give customers plenty of payment time, it could be working against you when it comes to profit.

By making sure invoices are sent out as early as possible, you are still giving customers a good amount of time to make their payments. Instead of giving freedom to pay when they want, perhaps set a deadline on the payments. You can then make transactions much sooner and receive payment without delay.

Small Business Loans

The most important thing to do is make sure you are not left in debt. If you have a financial plan for the future and you know cash flow will soon pick up, getting a loan should not be much of a risk. Whether this is just to give you a financial boost and a bit more spending power or you just want slightly extra cash to pay suppliers or staff, a loan could be a good option.

As long as this is correct, you will be left in a much better financial position. Using finances to continue reinvesting into a failing project or to purchase unnecessary items could leave you with bigger financial debts and liabilities. Make sure that if you do choose a loan, you have a good plan of where the money will go. This prevents having further payments that you cannot pay.

Maintain Communication & Seek Advice

The worst thing to do is to cover up the cracks until the whole thing blows up. By maintaining good communication with directors, stakeholders, creditors and any investors, your business stays in a good situation. Ultimately, improving financial performance is a project you can actually achieve with this approach.

Without good communication and honesty, it could cast a doubtful eye over your business. This may lead to damaging the trust between you and other stakeholders. Along with communication, seeking good advice from professionals can be a useful option. Accountants will help you manage and improve financial performance. Additionally, they will also have ideas on how to raise revenue for a business running out of money.

Contact Us

If your business is struggling financially or you want advice to create a financial plan and help your business flourish, speak to Coleman & Co. Call us on 028 9266 3599 or fill in our contact form to make an enquiry. You will receive a fast response from our team throughout Lisburn and Northern Ireland. Consultation and accountancy services are available whenever you require.

How To Bookkeep Effectively

By | Blogs, Bookkeeping | No Comments

Bookkeeping is one of the most important tasks for any business but can be very strenuous. Finding an effective and efficient way to bookkeep should be a priority for you. This allows you to complete bookkeeping tasks quickly and focus on other areas of your business.

Coleman & Co support all businesses throughout Lisburn and Northern Ireland. Whether you need advice regarding finances or want to outsource, we help you bookkeep effectively.

Create A Bookkeeping System

Your bookkeeping and record-keeping doesn’t just become efficient overnight or by simply storing your records. Your bookkeeping process should be planned and by creating an actual system, this will allow you to manage more effectively. Having some sort of spreadsheet in Excel simply isn’t enough and you will realise the benefits of an actual bookkeeping system.

Using professional accounting software, bookkeeping becomes much easier. There is a range of software you can choose from if you are looking to manage books yourself. Outsourcing may be the best option to ensure the best software is being used correctly. However, if you have a good system in place and you stick to your bookkeeping process, this should allow all finances to be managed correctly.

Organise Existing Finances

Whether you are a start-up business or established for several years without a proper bookkeeping system, make sure you organise your existing finances. It is important you are on track with all invoices and transactions throughout your business, preventing any errors and also recording any finances before your business was launched. This could include loans or buying resources and equipment.

This will also make managing your future finances much easier. When it comes to making end of year accounts, financial reports and tax returns, your finances must be accurate. Without bookkeeping being completed correctly from the start, it could lead to more errors further down the line with finances not adding up and being recorded. Potentially, errors could creep in, even leading to fines during tax returns.

Self-Auditing

You can always make improvements to your financial management and self-auditing is a great tool to do this. Self-auditing will allow you to identify any errors in your bookkeeping process and why they are occurring. Making improvements is then much easier as you already know what the mistakes are, rather than making random changes that could go either way.

Self-auditing will also help you avoid future problems. By completing this consistently, it means your bookkeeping process is completely up to date. Less and less errors should be made as your system improves and any errors that still pop up can be quickly amended.

Financial Reports

Creating financial reports can help every business owner bookkeep more effectively. Not only does this help your business by having a summary of your financial performance month-by-month, comparisons and improvement become easier.

Financial reports will allow you to look back at previous finances and find any errors which may be affecting your current financial accuracies. Additionally, using this bookkeeping method is perfect for other resources such as cash flow forecasts and making financial improvements.

Outsource To Accountants

Whilst you may take all the right steps towards an effective bookkeeping system, it still isn’t enough. If this is the case, outsourcing to bookkeepers and accountants is the best option.

This will make sure all record-keeping is accurate and avoids any errors and keep your bookkeeping completely up to date. Also using the best industry software, this will make sure you bookkeep effectively.

Contact Us

For more information on how to bookkeep effectively or to discuss the services available at Coleman & Co, call us today. You will always receive a fast response from our team, helping all businesses throughout Lisburn and the surrounding areas. Make an enquiry and call us on 028 9266 3599 or fill in our contact form today.

How To Create An Accurate Cash Flow Forecast

By | Forecasting | No Comments

Creating a cash flow forecast is beneficial for every business. With a cash flow forecast, you will have a good understanding of your future finances and what budgeting is required to achieve your financial goals. To do this, your financial forecast must be accurate and effective.

Coleman & Co can create a cash flow forecast for every business. Working throughout Lisburn and Northern Ireland, our services are always available at a very competitive price.

Prepare Your Expected Income

As an established business, estimating your predicted income can be based on the sales figures of previous months or years. Although your business may have changed considerably, sales figures can still be based on previous performance and how your sales forecast may improve or decrease for the coming months.

Based on past trends, the income you gain from business sales should usually be accurate. Some errors may be made, however, this will give you a good overview of the basic income you expect your business to achieve. For new businesses who can not use previous data and statistics to create an expected cashflow, an accurate cash flow forecast can still be made. By estimating the cash outflows you will have to deal with, you know how much must be made to cover your costs.

This will be the minimum expected income for your business so you are breaking even. Your expected income is never set in stone and can fluctuate due to many factors. However, gaining an insight into the incoming cash flow will give you a good understanding of what your business should be achieving each month.

Other Cash Flow Sources

In addition to your expected sales, there may be other areas of cash flow sources that you should consider. Some of the extra income could be unexpected and therefore there is no way to include it in your cash flow forecast. However, you can consider some factors where income will increase, including:

  • Business Investment
  • Grants & Loans
  • License Fees
  • Repaid Loans
  • Royalties
  • Selling Assets
  • Tax Refunds

If you are expecting any of these to add to your income, make sure you include them within your cash flow forecast. You know what your income sources are and can separate the income you receive from sales and other income sources.

Detail All Expenses

Calculating your cash outflows will not only help you create an accurate cash flow forecast, this will also be ideal for creating a business budget. Your budget can be used to spend less than what you expect or just prevent costs going overboard.

Before the month begins, make sure you know all the expected transactions to come out of your business cash flow. This could include:

  • Bank Fees
  • Buying New Assets
  • Day-to-Day Costs
  • Investment
  • Loan Repayments
  • Payments To Owners
  • Payroll
  • Purchasing Resources & Equipment

Unexpected payments may have to be made and this is why a budget is important. Map out the payments you know about and create a budget so spending does not increase for your expected payments. With a budget, this should help you make larger profit margins and therefore cash is leftover. If an unexpected payment does occur, your budget will save you money for emergencies.

Combine Costs & Income

To make your cash flow forecast and maintain its accuracy, the final part is to put together your income and costs. Therefore, when income and costs have been detailed correctly, your cash flow forecast will be accurate, excluding any unexpected payments.

Having a cash flow forecast is important, not only to see how much profit you should be making each month but to find where costs can be reduced and if you need new areas of revenue.

Contact Us

For more information regarding the services available at Coleman & Co, speak to our team today. We can help all clients throughout Lisburn with a cash flow forecast, ensuring you are effectively planning for your business’ financial future. Make an enquiry and call 028 9266 3599 or fill in our contact form today.

Financial Tips For A Start-Up Business

By | Start-Up Business | No Comments

Even in your earliest days, a start-up business must be fully prepared for the financial aspect of their company. Managing finances as a start-up is no easy task and it is important you have the right advice. You should always have a plan in place to avoid any potential issues and slipups with your finances.

Coleman & Co support all businesses in Lisburn and the surrounding areas. If you are a start-up business looking for financial advice, our team are always available.

Creating An Accounting System

It is important that your business already has an accounting system in place or you outsource your accounting. Your start-up business will have many finances to manage and this is not easy without a successful accounting system. Whether you choose to use a qualified accountant or complete accounting in house, you should always find a suitable system to easily manage your finances.

If you fail to do this, your business is likely to struggle from the get-go. Whilst the business may be run successfully, it becomes difficult to track all transactions and cash flow of the business. Your accounting system or software should let you easily manage all finances. If any problems do arise, they can be dealt with quickly.

Begin Financial Management

Financial management is essential to track all your invoices and transactions, both incoming and outgoing. Your financial management should begin as soon as and even before you have launched your business. It is difficult for a start-up business to stay afloat in its early life and this can become even harder without financial management.

This means that your business is not keeping track of finances correctly and therefore cash flow is not properly recorded. This can spiral and lead to several financial errors that could cost your business in the short and long-term. Financial management is important to avoid this as a business and make sure all income and expenditure is looked after.

Build Your Budget

It is never too easy for a business to create a budget. Whether this is just one budget for your whole business or you split the budget into your different expenses, a budget must be created. You should try to set up an initial budget so you don’t spend too much setting up your business. From this point, you should always try to limit your spending, maximising your budget as a start-up business.

Your budget must always be accurate to what you expect to spend whilst also being realistic. If you create a budge too small, it could limit the success of your business. With a budget too big, it is almost pointless as it will not lower your spending at all. You should always consider what you must spend money on and what money you would like to save to create a suitable budget. Mapping out your expenses should always give you a good understanding of exactly what is being spent.

Establish Financial Goals

By establishing financial goals, your start-up business is planning for the long-term. Not only are you creating a target and a goal, but you should also be creating a plan of how you achieve that target. With budgeting and cash flow forecasting, this can always be achieved and you can always identify how to make a positive cash flow and save money at the same time.

With financial goals, this should also help you create a strong platform for growth in the future. Your start-up business should have stability from the start and this can help you consistently make money whilst also saving in case of any financial issues you encounter. Even if you do not meet your financial goals flawlessly, you should be left in a better financial position.

Contact Us

For advice as a start-up business, get in touch with Coleman & Co today. You will always receive a fast response from our team, with a range of accountancy services available and consultation whenever you require it. Make an enquiry and call us on 028 9266 3599 or fill in our contact form to make an enquiry.

Guidelines For Creating A Business Budget

By | Business Budget | No Comments

Creating a business budget is essential for every company. However, if your budget isn’t created effectively, it will likely have a negative impact on your spending. When creating a business budget, there are several guidelines you should always follow.

Coleman & Co have experience working with a range of businesses. We can always help you create a business budget that improves your financial performance.

Cash Flow Forecasts

One of the best tools to use when creating a business budget is, firstly, forecast your cash flow. By forecasting both your expenditure and revenue over the near future, this will help you create an accurate budget that will reduce costs.

Not only will a cash flow forecast show how much your company is likely to spend, but it will also give you the chance to reduce any unwanted costs before you even create a budget. Once you have considered which costs are not needed, you can create your budget based on your leftover expenses. Your budget should never exceed predicted costs and could be lower, giving you the chance to further reduce your costs.

When creating your cash flow forecast, you should note down all the payments you expect to make. It is important to record all outgoing transactions to fully prepare for the situation and give your budget high accuracy.

Splitting Your Budget

Whilst creating one big budget for the business is necessary, you must also make sure the budget is split. Giving yourself the best understanding of where your money is being spent will help you in the future to continue planning your budget and eventually lower it. This will also identify the weakest areas for some businesses, allowing you to increase budgets for more profitable areas.

You should split your budget across the business once you have made your monthly or weekly budget. Using comparison from previous months, you can make sure the budget is divided successfully. This should optimise revenue and profit, preventing overspend in all areas of your business.

Flexibility & Preparation

Using different tools to create your budget is great but you must also be prepared for unpredictability. You will never know exactly how much money you are going to spend so having room for error is essential. You should always make sure the business is flexible and well equipped to deal with any large, unexpected payments.

This is why creating a conservative budget is extremely important. You want your budget to not only lower costs but also give you breathing space. This means that with your budget In place, you should have a healthy profit margin, saving up money for future growth and development. If you fail to do this with budgeting, it could lead to financial issues in the near future as you are not prepared for different payments.

Prioritise Your Spending

To keep your budget and your spending as low as possible, it is important to prioritise your current costs. This includes payment for supplies as you should always look for the most cost-effective option to keep spending low.

For your business to be a success, you always want expenditure to remain at a minimum. By prioritising the costs most important to you and completely removing some of the most irrelevant costs, you can quickly reduce expenditure.

Contact Us

Coleman & Co work with all businesses throughout Lisburn and the surrounding areas. If you require advice or would like our accountants to create a business budget, get in touch with us today. You will always receive a fast response and personal service from our team. Call us on 028 9266 3599 or fill in our contact form to make an enquiry.

Identifying Your Business’ Financial Strengths & Goals

By | Business Financial Strengths | No Comments

To improve your business finances, it is essential to identify your business’ financial strengths and goals. Knowing the strengths of your business will always help you focus on the most successful parts of your business and make a healthy profit.

Coleman & Co help every business identify financial strengths and goals. Supporting all businesses throughout Lisburn, you can depend on us for a comprehensive service.

Recognising Strengths & Weaknesses

Every business has their financial strengths and weaknesses but recognising them can often be more difficult. You must first identify which products offer the best profit margins to your business, that also work successfully. Once you know what services offer the best cash flow to your business, investing more time and money into these areas will always be beneficial.

If there are any weak points of your business that do not seem to be producing the financial performance you desire, this is just as important to identify. This will prevent you from continuously wasting money in the future if it gives you very little return on investment. Saving money will improve cash flow so finding the most successful products is always essential.

Analysis & Accountant Advice

To identify your strengths and weaknesses, as well as assess all your products, analysis of your business is needed. There are several tools that can be used such as SWOT analysis and others to help you find the return on investment of all your products. Additionally, accountants can always offer advice to give you information regarding your business strengths and weaknesses.

Accountants use a range of modern software and tools to provide an accurate analysis of your business and assist with every aspect of your financial performance. With advice from your accountant as well, this can make focusing on the correct area of your business much easier. This will help back-up any assumptions you have made and give you the correct data about your services and products.

Creating Business Goals

Once you have an in-depth analysis of your business’ strengths, you can then create achievable goals. Business goals are important not only to motivate yourself and staff members but also planning for the future. Even when your business is flourishing, it’s important to think about your goals and what you want to achieve long-term.

Creating business goals will always help you improve your future performance. Outlining your goals also makes sure your business is heading in the right direction and using your strengths, all targets are achieved. This could also help you identify new opportunities that can also be used to improve financial performance for your business.

Business Financial Goals

There are several financial goals that you can set yourself to massively improve your finances. Whether your financial goals are relevant to your business budget, increase in sales or the pricing of your products, it is important to consider every possible route.

Budgeting can be one of the most important features of any business. Whether you are creating a short-term or long-term goal, your budget must be accounted for. If your current budget is not limiting spending and maximising profit, it may need to be reviewed. Accountants can always assist in creating an accurate and successful budget to help limit spending whilst still achieving goals.

Contact Us

If you would like more information on identifying your business’ financial strengths and goals or need advice from our team, contact Coleman & Co today. You will always receive a fast response and information regarding all the services we have available. Call us today on 028 9266 3599 or fill in our contact form to make an enquiry.

Benefits Of Smaller Accounting Firms

By | Accounting Firms | No Comments

Choosing between large and small accounting firms can be a difficult decision for many businesses. However, working with a local and smaller accounting firm can often be the best option. There are many drawbacks to using larger firms to manage your finances.

Coleman & Co support all businesses, large and small, throughout Lisburn and the surrounding area. When you are considering accounting firms, our team can always offer a comprehensive service.

Personal & Genuine Relationships

With many bigger firms employing a number of staff members, you can find yourself working with different accountants each time. Not only does this mean you can’t develop a genuine relationship with your accountant, but it can be more difficult to manage your finances. Dealing with different staff makes it harder to discuss the same issues you are encountering on a regular basis.

With personal service from smaller accounting firms, you can be assured of support whenever it is required. As you also deal with the same accountant for your business, this allows you to create genuine relationships whilst continuously improving business finances. Smaller accounting firms will always strive to improve your business financially.

Local Expertise

Whilst this isn’t always your main priority, an accountant with knowledge and expertise of the local area can be helpful. A local accountant is also easier to visit if you require an actual meeting, helping to build your relationship. Additionally, this can be much easier than getting in touch with accountants from a bigger firm.

At Coleman & Co, our local expertise gives us a great understanding of any issues that could be occurring to local businesses and industries. As we are located nearby, we have a great understanding of all the problems you could encounter when based in Northern Ireland.

Experience With All Businesses

Both big and small firms will have experience dealing with all businesses in many industries. However as smaller accounting firms work much closer and regularly with each business, it will often give us a better understanding of each business’ problems and how to solve them effectively.

This means when you come up against financial issues, we have the experience to quickly deal with them. Providing all accounting services you may require, we can identify a number of problems and how to improve your financial performance. Whether this is through your cash flow, tracking invoices or creating business budgets, we can always assist.

Time To Improve

Along with a personal service, accountants from smaller firms will often have more time to completely dedicate to your business. This means other than general accounting and bookkeeping, you will receive a huge range of accounting services. Rather than just having other accounting information available to you, smaller accountants can work through this information and advise you on how to improve.

With consultancy and advice services also available, this ensures you can discuss your business and finances whenever you require. Smaller accounting firms will always have the time available to work closely with you and give the further information you require. This also means accountants can work in each area of your business, specialising in its improvement. In the long term-smaller accounting firms can be the best option to improve your finances.

Of course, choosing an accountant is different for every business. Smaller firms are often more personal, cost-effective and helpful for improvement, giving you the best opportunity to grow.

Contact Us

For more information on the accounting services we have available, contact Coleman & Co today. We can always provide the advice you need regarding your finances and discuss all the services you require. Call 028 9266 3599 or fill in our contact form to make an enquiry and receive a fast response.

How Can An Accountant Help My Business?

By | Accountant, Accountants | No Comments

Accountants offer so much more than simple bookkeeping and account preparation. With a successful and experienced accountant, businesses can always improve their financial performance. With a range of accounting services, you can always benefit from an accountant.

Coleman & Co provide a range of accounting services for all businesses. Your accountant can always discuss your finances and what improvements can be made.

Creating Business Strategies

To improve financial performance, it is important to have business strategies in place. A business strategy is created to help your business identify and achieve its major goals. Whether this is personal, financial or business goals, accountants can help you create your business strategies and key performance indicators.

It is important that your business strategies actually help you meet your goals and make your goals achievable. Whether you are a business startup or you have just never set marketing strategies, an accountant can always you put these features in place.

Fixing Cash Flow

Cash flow is essential to every business. If your cash flow is not giving you the positive financial performance you desire, there is often a lot of improvements you could make. An accountant will identify why expenditure outweighs revenue and how this can be changed for your business. Just some of the issues an accountant may deal with includes:

  • Create Business Budgets
  • Lower Running Costs
  • Managing Debt
  • Unpaid Invoices

There are several areas of your business that accountants can look at and a suitable solution should be found. To fix your cash flow, it is important to look at all outgoings and what can be prevented or minimised using smart budgets.

Tax Records & Returns

One of the most important processes for every business is your tax records and returns. Taxes are a financial area that most business owners want to outsource and struggle with. Even if you are happy doing your own taxes, there are ways an accountant could help your business with taxes.

Not only will accountants make sure taxes are submitted accurately and on time to avoid fines but they will also provide many other tax services. This can include tax audits and dealing with the HMRC during any investigations or queries. By also fixing any poor record keeping and with legal knowledge, it ensures you never pay more tax than necessary. This can save money whilst also preventing penalties through incorrect tax returns.

Providing Accounting Software

Accounting software is not just used to make your business record keeping more efficient. Accountants should introduce new software to all businesses, whether this is for just one member of staff or a whole team. With accounting software, your finances can be managed much better.

This will also give you the software needed for many other business processes. Whether this is invoicing, taking payment or completing payroll, the best software makes these processes much easier.

Financial Consultancy

Some businesses may be financially stable but this doesn’t mean accountants can’t help your business. With financial consultancy, this can still address many of the issues your business faces and areas of improvement.

If you want to improve your financial performance, advice and consultancy from an accountant can always be beneficial. Even if you do not require accountancy services, accountants will have great experience dealing with many businesses and industries, giving you great knowledge of how finances can be improved.

Contact Us

If you would like more information on our accountancy services, get in touch with Coleman & Co today. We can support all businesses in Lisburn and throughout the surrounding areas and provide you with a trusted, qualified accountant. Call us on 028 9266 3599 or fill in our contact form to make an enquiry.

A Guide To Digital Tax

By | Digital Accountancy, Digital Tax | No Comments

From the 1st April 2019, VAT registered businesses with a taxable turnover above the VAT threshold will have to make the transition to digital tax. With the right software and help from qualified accountants, this process can be made easy.

Coleman & Co work with all businesses throughout Lisburn. Providing a range of accounting services, we can prepare all clients for digital tax.

Why Is Tax Going Digital?

Tax is going digital as part of the HMRC plans to ensure the UK tax systems are as easy and efficient as possible for all taxpayers. Whilst all businesses can choose to move to digital tax, it is essential for some businesses. If you have a turnover above the VAT threshold of £85,000, you must keep digital records. This also means all tax submission will have to be made with the digital software suitable for the HMRC.

Whilst the transition to digital tax may be stressful for many businesses initially, this change should help. It makes submitting taxes much easier and with tax records also being recorded, this can easily be submitted without errors. 71% of businesses currently submit records through the HMRC website. However, with digital tax, this will not be necessary and taxes can be completed through uploads from tax software.

How To Prepare

Whether your business must submit taxes through digital software or you do not exceed the VAT threshold, you should still be preparing for this change. Eventually, all businesses will have to submit taxes online as we make this transition with modern technology. This means your business should be reviewing your software and processes to ensure this is HMRC compatible.

This could mean initial costs to upgrade could be expensive for your business. Despite this, in the long term, it will be the best option for you. It ensures time spent on taxes will be reduced and that errors can also be avoided. With taxes and records all being recorded on digital software, this should make tax returns more accurate. Taxes can easily be attached and submitted to the HMRC without any issues.

For businesses exceeding the £85,000 threshold, making these changes quickly are essential. With just 3 weeks until digital tax is put in place, the sooner this software is made available, the easier it will be to submit taxes before the deadline and meet all the needs of the HMRC.

Keeping Taxes Accurate

There are several exceptions for businesses who will not have to adjust for April 2019, with a 6-month extension until October 2019. This includes:

  • ‘Not for Profit’ Organisations
  • Government Departments
  • Local Authorities
  • NHS Trusts
  • Public Corporations
  • Traders Based Overseas
  • VAT Divisions
  • VAT Groups

For all other businesses who must adjust for April, our accountants can meet your needs. With the correct digital tax software available and with our business providing tax returns for all businesses, we can make sure you are fully adjusted.

Our team manage all record keeping and tax records for every business. With our accounting systems, this allows us to reduce the number of errors in your tax records and make a quick submission before the deadline, with all records completely accurate.

Contact Us

If you would like more information regarding digital tax and require the support of Coleman & Co, contact our team today. We are happy to help all businesses throughout Lisburn and the surrounding areas with tax and accounting services. Call us today on 028 9266 3599 or fill in our contact form to make an enquiry.

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