I need to know what money is coming from my bank account
Do you struggle to understand the money that is coming from your bank account each week? Do you hide behind the sofa when you check and see that you don’t understand how your bank balance can be that amount? It doesn’t make sense!
Not knowing the simple things about your business can have a huge impact, it can make it difficult to plan for the future and to be able to invest and grow.
These are things that you should know and you should be able to have this information at your fingertips when you need it.
Not having it means that you just spend your days and weeks confused and not have control over your business and feel that growing your business and making it what you want it to be is beyond you. There’s just no way that you see to move forward.
I need to know what payments are going out of my account each month
One thing that will stop your business growth in its tracks is bills not being paid. That will reduce the morale in your team if your wages are paid late and will impact the delivery of your work if you can’t afford to pay for your rent, software subscriptions and services that you use. Everything will grind to a swift halt.
Once you get in a downward spiral it will be hard to get back out. You need to make sure that you can pay your bills and meet all the financial obligations that you and your business have.
You need to be aware of everything coming in and going out of your bank account and that you are aware when you have got bills to pay and taxes to pay as well. If you don’t your business will come to a very quick standstill.
Why are the payments not showing in the list of my outgoings list in the current month?
Finance and accounts are confusing! Nothing makes sense, I can see one thing in my accounts and then in my cash payments each month I see something different! What is going on?
Typically when you send an invoice to a customer it is not paid straight away. It will be paid a few days or weeks later. When you look at your accounts it will be included in your accounts as soon as you send it to your customer. When you are paid it will then be recognised in your cash balance.
It will be the same for your expenses, you might pay your team on the first week of every month, their wages will be for last month but they are not paid until the first week of the following month. There are always small timing differences that you need to be aware of.
That is why you need to be aware of the cash coming in and going out of your bank account, especially since there will be differences.
What will this mean to you?
You probably have to face upWhat will having all of your finances taken care of mean for you and your business? It will mean that you no longer have to worry about doing all the admin work that comes with running your business. No longer spending your time trying to figure out what you can and can’t spend. No longer spending your evenings and weekends worried about if you can pay your staff, bills and taxes. It will mean that you have clarity over your money.
It will mean that you can look forward to investing and growing your business to be the best it can. To give you freedom, creative enjoyment and the life that you want to live. It will give you control over your business and your life.
Being clear in what you can and can’t spend, dictates all of our lives. Money is such a fundamental factor in how we live our lives. You need to have control over it. Its not really the amount of money that you have but are you in control over what you do have and can live with in your means and pay all of your bills.
Once you have that your business will start to feel better and you will be in control of it.
How do I get this clarity?
You get clarity in your finances when you can see the difference between the money that is getting paid in to your bank account each week and each month and what is reported in your accounts. You need to understand the difference in the timing of the payments that you make and receive and the time when these expenses and income in your accounts.
You need help from a professional accountant to maintain and give you this information and to explain what these numbers mean for you and your business. You need regular meetings so you can talk through what your finances are looking like each week and each month and plan where your business will be each week and each month.
You need to know what you can spend, what you can save and you need to be very clear and understand this.
You need your accountant to be able to give you advice on your finances and to be able to bounce ideas off when you want to make a decision.
You need help from your accountants and their team to make sure that you get the support and clarity that you need to grow your business and have the freedom and the life that you deserve from your business.