Your business should continue to grow throughout 2018 and making the correct financial decisions will ensure this happens. But what financial changes should you be making to guarantee a successful year for your business?
There are always many financial changes that you can make to your business and Coleman & Co can provide you with the accounting tips you need to be successful.
Reviewing Your Finances
With the new year beginning, it means you have financial data from 2017 that you can use in several ways. You can constantly monitor your new financial performance through comparisons to your previous income and outgoings. This should help you prepare for the year ahead as well as avoiding any mistakes that you have previously made.
Using the past year to prepare your business is an easy option to make sure you have big improvements. With our accountants, we can use your previous financial data to help set targets for the new year and forecast your cash flow.
Prepare For Growth
Part of improving your business is growing it effectively, allowing you to make a higher profit. By planning out your growth in 2018, you know when to spend, save and invest money into your business. Creating cash flow forecasts to predict the money you will have throughout the rest of the year, you will be fully prepared to grow your business.
Even if you do not have the biggest intentions to grow, there is always room for improvement within your company. If you do not have the money available in these moments, it is difficult for you to make improvements and remove problems that may arise.
Planning at the beginning of the year allows you to see when it would be best to grow your business. This can decide whether you should grow or maintain your current size based on your performance.
Set Your Targets
At the start of every year, you should have goals and targets that your business and staff members set out to achieve. Throughout the year, you may amend these targets to be higher or lower based on performance, however this is the best time to set your initial aims. Based on your performance over the previous 12 months, your targets should be an improvement from last year. This will keep your business advancing.
Saying you want to spend less money or make 5 times more money is not enough. You should be thoroughly planning how you are going to manage this and reach your targets. Once targets are set for each department within your business, staff will be more motivated to work harder and reach these targets, especially if there are incentives involved.
Creating A Budget
Making a good profit every year will always depend on how much money your business spends. Even if you make a fantastic revenue, profit will be hard to come by if you do not control expenditure. Although you may have unexpected costs throughout the year, the majority of your costs you can plan for.
Our accountants can help you create a successful budget for the year, whilst planning out your expected costs month by month. This means you will never spend more than you expect to. Budgets can be adjusted for any additional costs and financial changes you may have to make. Creating an accurate budget will ensure if revenue drops in certain months, a profit can still be made as you are fully prepared for this scenario.
Outsource To Accountants
Finances can be difficult to manage effectively. If you have had a poor year, take advantage of professional accountants to ensure it doesn’t happen again. Using the correct systems, finances will be recorded and used to give you data and information regarding your business.
Managing finances can be extremely time consuming. Having accountants to do this for you will save you time and ensure accuracy with costs and revenue. You should be removing any errors that were made last year and make 2018 successful for your business.
Whether you need advice for your business or would like any of our services, contact Coleman & Co today on 028 9266 3599. We are happy to assist all sized businesses throughout the Lisburn area and keep your finances under control in 2018. You can always make financial changes to improve your business, we are happy to help identify these changes.