How do I make better decisions for my business?

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How can I make better decisions for my business?

Get your information up to date!

Getting your accounts up to date and keeping them up to date is one of the best things you can do for your business. It lets you know where your business is at, what money you owe and money you are owed. It makes the collection of money that you are owed easier if you know exactly what you are owed and you can ask for payment.

You can keep control over your spending and make sure that is stays in the limits that you set. You can Use up to date information to make better decisions about your business.

Keep your accounts in order

Keeping your accounts in order is the first step in getting more control over the finances for your business.  Setting a structure to make it easy and keep quality records is easier than you think. A lot of it can be automated using software such as Quickbooks and Xero.

Keeping good records will mean that you have all the expenses in the accounts claimed for and the proof of the expenses kept safe.  It means that you will be able to file them in time and won’t have any late filing penalties or rushing at the last minute to file them.

You will be able to see what tax bills you have coming up for the next few months and you can make sure that you have money to pay them. You are in control of the accounts not the other way round!

Collect your debts easier!

To collect your debts you need up to date information. Clear details on who owes you what and when it is due to be paid. You need your accounts up to date with the invoices for the work that you have done and any payments that have been made. Any error in this will delay payment being made to you.

These are your customers and the quality of your service should be there in everything that you do. The work and how you deal with them outside of that. If you are professional in your work the invoicing and debt collection also needs to be like that as well.

You will be expected to invoice promptly and collect the debts politely when they are due.

Know where your business is?

To run a successful business you need to know where you are now. To reach a destination you need to know where you start and then you can plot your way there. It is the same for your business.

You need to know how well you are doing know, how much you are earning each month and how much you are spending. You need to know what your expenses are and to understand why you need to spend that money.

You should be able to set realistic amounts of what you will spend each month on the expenses for what you are earning. You should have limits to spend on wages, rent for your office, software, equipment and promoting your business. If you don’t control these expenses they will spiral out of control.

Keep control of the money

Controlling your business and finances will become more important the bigger that you get, you have to set limits for expenses and keep to them. Constant monitoring every month will make sure that you keep in these limits and keep control over your finances.

Keeping control of the money in your business is important. You will need it to pay for your bills and taxes in future. Knowing what these taxes and bills are now will help you plan now for the future.

Getting the accounts up to date is an important step in starting to look at the future of your business

If you want to start to make plans for your business one of the most important first steps is to get your accounts up to date. If you don’t do that you can’t predict the future with any accuracy. You need to have accurate information or the predictions will not be worthwhile.

If you have plans to grow and make your business better, you need to start to make plans. Planning how you will do it and to make sure that you can afford to do it. You need to have your financial plans in place to show and signpost the way for you.

Planning will help your business day to day

Projecting how your business will be doing in 12 months’ time or two years’ time is a process that is very helpful day to day for your business. We can help you predict the amount of taxes you will pay in future and looking at the work you are currently doing and what you have in the pipeline predict what you will be earning.

If we predict what you will earn, we know what your monthly running costs are we can see what taxes you will pay and how much money you need and if you have any spare over the next 12 months.

When you start to look in to the future like this you can make better decisions.

What if things go wrong?

When we look in to the future as well like this we can do a bit of role-playing. We can see how things would look if you lost an important client or piece of work, what actions you would need to do to keep everything running smoothly.

We can do a few scenarios like this for say a good, bad or normal expected outcome.

These are again helpful because they help you prepare for events so if they did happen you are ready to react quickly. You won’t be caught out by anything that will cause you to panic, you will have planned for anything bad already and you will have a strategy in mind how to deal with it.

Keep updating plans

Situations constantly change and the plans for your business should also change. If we are looking 12 months in the future these should be updated every month particularly if circumstances change.

Having this level of detail in the information that you have about your business. How well it is performing, what expenses and money it will have in the future and control over the day to day expenses and running costs will only mean that you make better decisions.

You will build up an understanding of your business that you did not have before. You will see what it is that makes your business successful, where it spends the money and what you need to be aware of for the future.

Confidence

You will have confidence that you can invest in your business and you can take on staff and grow your business.

You will react to situations quicker because you have considered them before and already have plans in place how to deal with them. You will become better at your business.

When you have better, up to date information you will make better decisions. You need the right information at the right time in a format that you can understand and make decisions from.

How can we help?

We can help you set the structure to make it easier to keep your accounting records better and to make it easier.

We can help you look at your expenses that you have for your business help set limits for them each month and constantly monitor them to make sure that they stay on track.

We can help you predict what expenses, taxes and income you will have over the next 12 months and keep updating this so it is always accurate.

We can help support you and guide you in making the difficult decisions for your business. Keeping everything running smoothly and that you keep growing and moving forward with your plans.

We speak to you!

Finally we can speak to you on each month about your plans, concerns and problems that you have. After everything else that is what we are best at, listening to you understanding your concerns and giving you advice and support.

We love to speak to our clients, get to know them and their business. We want to help you on your business journey and build a business that gives you freedom. Freedom to enjoy your work, your free time and to have the financial freedom to do all the things you wanted to.

 

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