Many small businesses get into the habit of making either poor or fantastic financial decisions, without knowing the consequences. How can you guarantee successful financial management and make the right decisions for your finances?
Coleman & Co can advise all businesses on your financial decisions. We ensure you can manage finances correctly by making the best decisions every time.
Regular Financial Reviews
Many businesses are happy with their financial performance so will not go into great detail over the actual finances. Having a regular review of your finances will allow you to closely monitor performance over the past week, month or year and ensure your business is heading in the right direction.
Although you may be content with finances, a review will find any areas where finances need to improve or where your cash flow dropped for a period of time. From this data, you can make the changes you need to successfully manage finances. Reviews should be completed regularly so you are kept updated on any drop or improvement in performance.
Organising Your Budget
Budgeting is an important factor within every business and if you fail to create an accurate budget, your business could find it difficult to manage finances. Whether a budget is created for the entire business or split into departments, it must be done. Having a budget will not only limit spending but prioritise different sectors of your business.
Many businesses use any money available as part of spending but saving and budgeting will make financial management easier. Having a budget means anything leftover for your business can be saved and put towards something much bigger in the future. By regularly saving, your business doesn’t constantly run out of money and you always have backup cash available. Creating this safety net is perfect for emergencies and problems that could occur instantly.
Not every outgoing transaction within your business is needed and prioritising your main needs will bring success. Your budget will ensure money is only spent when necessary, making it integral to manage finances.
Measure Your Progress
Every business is looking to make progress, whether this is financially or just in terms of business and staff performance. Measuring your progress over a certain time period gives you the incentives you need to move forward over the next few months. This allows you to set yourself and the business goals that can be achieved and how they will be met.
Once your targets are set, achieving them can be done in several ways, but financial management will be needed. Whether you spend less money, or invest more hoping for a better output, financial planning will help your business move to the next level. This can act as a great motivator for your staff, who will want to reach these goals if it offers a reward.
Finding Financial Alternatives
You will often depend completely upon your own performance and the finances that you bring into the business. However, using alternative financial routes could benefit your business and give you the money you need to succeed. This additional money could come from both loans or an equity stake and although money must be paid back, it would put you in a better position for the future.
This isn’t the right move for every business, but if you are struggling to perform, it’s an option worth exploring. Another great way to avoid high costs whilst keeping income high is through your clients. If your products are good and trusted by clients, collecting monthly payments and payments in advance for your service can still source income without you having to invest at the same time.
Coleman & Co can provide advice to every small business to manage finances correctly. We also offer a wide range of services to allow budgeting, planning and reviewing your finances much easier. If you would like our services within Lisburn or surrounding areas, we are happy to help. Call us today on 028 9266 3599 or fill in our contact form to make an enquiry.