13 Feb 2023
Are you feeling overwhelmed by all the changes that are happening in the world? Don’t worry, you’re not alone. In fact, a lot of business owners are feeling uncertain about the future. However, that doesn’t mean you can’t prepare for growth and prosperity in the coming year. Let’s take a look at 6 tips to help your business move forward in 2023.
#1 – Launch New Products or Services
One of the best ways to ensure continued success is to launch new products or services. This will keep things fresh and exciting for your customers, as well as help you to attract new ones. Make sure that whatever you decide to roll out is high quality and meets the needs of your target market.
Of course, it’s essential to conduct careful market research when it comes to launching new products or services. That way, you can be sure that there is actually a demand for what you’re offering and that it will be profitable. Ask your audience for their feedback on potential new offerings to get an idea of what they would be most interested in.
#2 – Hire a Coach or Mentor
If you’re feeling lost or uncertain about the future, it might be a good idea to hire a coach or mentor. This type of professional can help guide you through the challenges and changes that are ahead. They’ll offer valuable advice and support, as well as help keep you accountable.
It’s important to find someone who has experience in the area you’re looking to grow your business. For example, if you need help with marketing, find a coach who specializes in that area.
Coaches and mentors can be expensive, but they’re worth the investment if they help you achieve your goals. In fact, they can actually save you money in wasted time and mistakes.
#3 – Digital Innovation
The world is increasingly becoming digital, so it’s important for your business to keep up. This means embracing new technologies and using them to your advantage.
One way to do this is by creating a strong online presence. This includes having a well-designed website, using social media effectively, and optimizing for search engines. It’s also important to create content that is both informative and engaging.
You can also use digital technologies to improve communication within your company and make it more efficient. For example, you might consider using a cloud-based system for file sharing or video conferencing software for team meetings.
#4 – Consider Government Assistance
If you’re feeling overwhelmed by the cost of expanding or upgrading your business, consider government assistance. There are a number of programs available that can help with things like training, marketing, and even hiring new employees.
The best way to find out if you qualify for any government assistance is to do some research online or speak to an advisor at your local chamber of commerce.
Keep in mind that there may be some waiting periods involved, so it’s important to start the process well in advance.
#5 – Leverage Social Media
Social media is a powerful tool that can be used to reach a large number of people quickly and inexpensively. It’s therefore essential for your business to have a strong social media presence.
This includes creating profiles on all the major platforms, developing interesting and engaging content, and using hashtags strategically. You should also consider running social media ads to reach more people.
Social media can also be used to build relationships with customers and create a loyal following. When done correctly, social media can be an incredibly effective way to grow your business.
#6 – Build a Talented Team
One of the best ways to ensure continued success is to build a talented team. This includes finding people who are passionate about their work and who have the skills necessary to achieve your goals.
It’s important to take the time to find the right employees and then invest in their training. This will help ensure that they’re productive and happy in their roles.
A talented team can help take your business to the next level, so make sure you do everything you can to attract and keep them.
Summary
So there you have it: six tips for moving your business forward in 2023. Implementing these strategies will help ensure that your business is prepared for whatever the future may hold, so take purposeful action today.
Book a free consultation here, to discuss your needs and learn how we can help you.
9 Feb 2023
It seems like everyday we hear about another industry being threatened by the advancements in technology, but is accounting one of them? Cloud based accounting software certainly has risen in popularity in recent years, but Quickbooks and Xero are no replacement for living, breathing professionals – and here’s why…
Location Freedom
Before we dive into the main reasons why accounting software won’t replace traditional accountants, let’s take a moment to think about one of the ways in which it can enhance and improve their services: location freedom. Whilst you may sometimes want to sit down face-to-face with your accountant, using cloud software means that you need not choose a professional based primarily on location. It also allows far greater flexibility and convenience which is certainly conducive to a healthy working relationship.
A Smaller Tax Bill
Granted, accounting software is able to help maintain accurate records and automate calculations for your tax return, but it won’t help you take advantage of the latest lucrative tax breaks and incentives.
Tax regulations change all the time and staying on top of them can feel like a full-time job in itself. A software program might help you get the numbers right on your return, but it won’t spot new opportunities to save a hefty chunk on your bill. Only a living, breathing accountant can do that!
Advisory
Accounting software takes care of much of the ‘grunt work’: the calculations, the forecasts and so on. What cloud accounting programs can’t do, however, is offer advisory services. A computer simply doesn’t have the business experience, critical thinking ability and financial acumen of a real-life accountant. Software can crunch the numbers, but it can’t offer counsel.
You might think that the covid-19 pandemic had businesses turning increasingly towards AI accountants but in reality, this period of economic hardship has simply underscored the importance of advisory accountants.
Businesses have been forced to navigate significant and sudden changes in law, initiatives, deductions and the shifting economic climate. Accountants have proven invaluable in helping entrepreneurs to navigate these ever-changing waters. The pandemic has brought us into unprecedented economic times and as the world continues to recover, advisory services will become more necessary than ever.
Consequently, these days more and more accountants are focusing on offering advisory services and acting more like business partners than processors. An experienced accountant is able to leverage their experience and acumen to offer valuable advice and insights to their clients. If Quickbooks or Xero could do that, the monthly subscription fee would be significantly higher.
Accessibility
Rather than replacing human accountants, cloud accounting software may even render accounting services more accessible to startups and small businesses. Business owners can use software to handle the grunt work for a smaller fee, leaving more funds to invest in interpreting the numbers. Traditional accountants will not be replaced, but rather their abilities will be enhanced by the advancement of AI.
Summary
Cloud accounting software is certainly helping to enhance and transform the work of traditional accountants, but there is no danger of human professionals being eclipsed by technology. Accounting software is a means to an end – and an effective one at that – but not an end in itself. As accounting software is increasingly able to take care of some of the industry’s more menial tasks, the role of accountants will not be eclipsed but will rather shift more towards an advisory one. Accounting software is certainly helpful for business owners, but there is truly no substitute for the shrewd financial insight of a professional accountant.
Book a free consultation here, to discuss your needs and learn how we can help you.
8 Feb 2023
In order to keep your small business running smoothly, it is important to develop healthy financial habits. This means being conscious of how you spend your money and conserving cash wherever possible. In this blog post, we will discuss four healthy financial habits that can help you conserve cash in your small business. Let’s dive into how you can build habits and create a more sustainable small business.
#1 – Set Financial Goals
In order to conserve cash in your small business, you need to get into the habit of regularly setting and updating financial goals. You can do this by thinking about your current financial situation and what changes you would like to make. Consider the following questions before setting a goal:
- What is my current profit margin
- What is my desired profit margin after tax?
- What are my current expenses?
- How many hours per week do I spend on this business?
- What would be the best ways for me to save money or increase revenue?
Once you have answered these questions, it will be easier for you to set realistic goals that conserve cash.
Remember, your goals should be SMART:
S – Specific, M – Measurable, A – Attainable, R – Relevant and T- Timely.
An example of a SMART goal would be: Increase my profit margin from 20% to 30% within 12 months by streamlining operations and reducing costs.
The goal is:
- Specific because it includes how much you want your profit margin to increase.
- Measurable because you can track your progress over time.
- Attainable because it’s not impossible to achieve.
- Relevant because it will help improve your bottom line
- Timely because you have set a deadline for yourself.
When setting financial goals, make sure to keep the SMART acronym in mind.
#2 – Perform an Expense Audit (and Then Plug the Leaks)
In order to conserve cash, it is a good idea to perform an audit of where you spend your money. You can do this by reviewing your bank statements from the past few months and identifying expenses that are not necessary for running your business.
The next step is to cancel any subscriptions or memberships that you no longer need or use. After that, you can try to renegotiate contracts with suppliers or vendors and ask them for a lower rate on their services. You should also make sure that your accounting software is up-to-date so you know where every dollar goes in your business (and what it’s paying for).
Finally, keep track of how much money comes in and out of your business on a monthly basis. This will help you to stay on top of your finances and identify any areas where you need to tighten the belt.
#3 – Automate Your Emergency Fund
One way to conserve cash in your small business is by automating your emergency fund. This means setting up a system where a certain amount of money is automatically transferred from your checking account to your savings account on a regular basis.
This can help you avoid the temptation to spend all of your money and will ensure that you have some funds saved up in case of an emergency.
There are a number of different online banking services that offer this feature, so be sure to do your research and find the best one for you.
When automating your emergency fund, make sure to set up a transfer that is realistic for your budget. You don’t want to put too much stress on yourself or your business by setting the transfer too high.
#4 – Monitor Your Cash Flow DAILY
Monitoring your cash flow on a daily basis is an important habit that can help conserve cash in your small business.
The best way to do this is by setting up an automated system where you receive notifications every day at a certain time of the day when there are new transactions recorded in your accounting software. This will keep track of all expenses and income so that you can quickly see where money is coming from and going to.
Final Thoughts
Conserving cash is important for any small business owner. The small changes outlined above amount to a big difference to your finances over time, so don’t wait to implement them in your business. Remember the old adage: in three months’ time, you’ll be glad you started today.
Book a free consultation here, to discuss your needs and learn how we can help you.
7 Feb 2023
It is a sad fact that many small businesses fail. In fact, according to the US Bureau of Labor Statistics, more than half of new businesses close within five years. There are many reasons why these businesses fail, but there are four common themes that arise time and time again. In this blog post we’re going to take a closer look at those reasons and dive into the lessons you can learn from them so that your small business stays successful.
#1 – Running Out of Cash
A study by US Bank found that 82% of failed small businesses cited cash flow mismanagement as a contributing factor to their collapse.
Cash is the lifeblood of your business; without it, you can’t keep moving. This is why it’s so important to have a good understanding of your cash flow and make sure you have enough money coming in to cover your expenses.
If you’re having trouble managing your cash flow, here are some tips:
- Create a detailed and realistic budget
- Track your spending and revenue closely
- Find ways to reduce your expenses – small changes add up
- Tighten up your invoicing process and don’t be afraid to chase up late payments
- Get a loan or line of credit to help you tide over difficult times
- Invest in tools and software that will help you manage your finances more effectively
#2 – Lack of Planning
Another common reason why small businesses fail is a lack of planning.
In the excitement of starting your business, it’s easy to get caught up in daily tasks and forget about where you’re headed. This means that many entrepreneurs fall into the trap of doing things ‘just because’, rather than creating a plan and taking intentional action.
To avoid this, you need to have a solid business plan in place. This document should outline your vision for the business, as well as your goals and strategies for achieving them. It should also include a detailed financial plan so that you can track your progress and make adjustments along the way.
#3 – Poor Management
It’s easy to think of your business as a special, unique snowflake. You might believe that since it’s based on passion and hard work, you don’t have to manage it the same way other businesses are managed.
However, being an entrepreneur isn’t all rainbows and butterflies; there are many tough decisions you’ll need to make and tasks that no one will do for you.
To be successful, you need to learn the skills of management; this means taking a moment to step back from your daily grind and look at things with an objective eye. This is especially important when it comes to hiring employees – if you don’t know how to manage people, you’ll struggle to hold onto staff.
The good news is that most management skills can be learned through education and experience, so set aside some time every week to read up on the subject or attend seminars with experienced entrepreneurs.
You might also want to look into hiring a business coach who can help keep you accountable for your goals and provide you with the skills you need to be a great leader.
#4 – Failing to Invest in Marketing
No matter how great your product or service is, if no one knows about it then you’re doomed to fail.
This is why effective marketing is so important for small businesses – it’s the only way to get your name out there and let people know what you have to offer.
Unfortunately, many small businesses don’t allocate enough of their budget to marketing, or they rely on outdated methods that no longer work.
If you want your business to be successful, you need to invest in modern marketing techniques such as SEO, social media marketing, and content marketing. You should also make sure you have a well-designed website and an effective branding strategy.
Final Thoughts
There are many reasons why small businesses fail, but by understanding the most common ones you can take steps to avoid them. Make sure you have a business plan in place, learn the skills of management, and invest in effective marketing techniques – these are the keys to success.
Book a free consultation here, to discuss your needs and learn how we can help you.
25 Jan 2023
Creating a business budget is one thing; sticking to it is quite another. No matter how carefully you have laid out your budget, implementing and managing it well can prove difficult. It’s important to remember that your budget requires regular care and maintenance, otherwise it can quickly become irrelevant. Here are seven tips to help you stick to your budget and keep it up to date.
1) Be Realistic
The first step in sticking to your budget is being realistic with your estimates. It’s important to take your past financial data into account when preparing your budget. There’s no use aiming to spend £2000 per month on expenses when your records show that your expenses are usually double that amount. Remember to factor in one-time purchases, too, and keep some money aside for emergency costs.
2) Break it Down
Looking at your annual estimates isn’t always helpful for understanding where you are and what you should do right now, so zoom in a little. Breaking down your annual budget into weekly or monthly sections can make your finances feel a lot more manageable. This is also helpful in terms of getting a feel for your progress and understanding where you are right now, as well as spotting potential problems before they grow out of control.
3) Include the Odd Treat
A strict budget with zero wiggle room and no tolerance for treats will leave you feeling frustrated, tired and tempted to throw it away. Budgeting isn’t just about frugality, it’s also about being in control of your spending and making conscious choices, so feel free to incorporate a treat or little luxury here and there. Your budget should feel like a guide, not a prison warden.
4) Review Regularly
You should aim to review your actual income and expenses against your budget on a weekly or monthly basis so that you can see whether or not you’re on track and if any adjustments are necessary. For example, if you’re spending more than you thought in one area, it may be necessary to think about ways to cut costs in other places. Alternatively, if you have spent less than predicted, you may be able to squirrel more money away into your emergency fund, invest it into marketing or pay off debts early.
5) Bank Reconciliation
Bank reconciliation means comparing your cash balances against your bank statements to highlight any discrepancies. This is usually thought of as an accounting process but it’s a useful budgeting tool, too, because it involves a close examination of your spending. Therefore, prioritising this process can help you to identify opportunities for improvement and allow you to understand how closely you are sticking to your budget.
6) Separate Business and Personal Finances
It’s important to use a separate business bank account and credit card for your transactions. Confusing your business and personal finances can make it difficult to understand your spending and thus makes it difficult to stay within budget.
7) Use the Profit First Method
If you find that your expenses constantly eat into your profits, then consider using the Profit First system to manage your money.
Developed by author Mike Michalowicz, Profit First works on the basis of Parkinson’s Law, which is the principle that work expands to fill the time available. In this case, of course, that means that your expenses expand to fill your budget. By allocating profit first, it becomes easier to remain disciplined with your spending and keep expenses low.
Summary
A good business budget is not only realistic, but flexible, easy-to-understand and regularly reviewed. Your budget requires close care and attention to ensure that you stay on track. Don’t be afraid to tweak your budget when necessary and leave some room for flexibility, as it’s nigh on impossible to be 100% accurate with your estimates. However, when you implement the above tips, your business budget should prove a useful guide on the road to financial success.
Book a free consultation here, to discuss your needs and learn how we can help you.
20 Jan 2023
Are you struggling to keep your head above water because of cash flow problems? If so, don’t worry – you’re not alone. Cash flow is the number one issue that any small business has to face and with the rapidly rising cost of doing business, it’s now more prevalent than ever.
With this in mind, we’ve put together a list of five simple cash flow solutions that should help you ease your cash flow problems.
Solution #1 – Cash Flow Forecasting
Knowledge is power, so they say, and this is especially true when it comes to cash flow. If you don’t know where your money is going, how can you hope to fix the problem? Forecasting is a very important tool for any business, but especially for those with cash flow problems.
Forecasting allows you to predict future cash needs based on past performance and current trends. This information is invaluable when it comes to making decisions about where to allocate your resources.
Cash flow forecasting can be a complex process with a lot of mathematics involved. Therefore, it’s best to enlist the help of a professional accountant or financial advisor to make sure that you get this process right. The investment will be more than worth it in the long run.
Solution #2 – Get Paid Faster
Let’s be honest: we’d all like to get paid faster.
However, there are actually several simple ways you can achieve this as a small business owner.
One way to improve your cash flow is to offer discounts for early payments. This will incentivize your customers to pay their invoices sooner, which will in turn give you the cash you need to keep things moving.
You should also tighten up your invoicing process and automate as much of it as possible. This way, you can send invoices out as soon as a job is completed and receive payments more quickly. You can also automate follow ups and reminders, so that no unpaid invoices slip through the cracks.
Solution #3 – Examine Expenses
A close examination of your business expenses is a necessary part of solving any cash flow problem. After all, if you’re spending more money than you’re bringing in, you’re going to have a tough time staying afloat.
The first step is to track all of your expenses for a month (or even better, for a quarter). This will give you a good idea of where your money is going and where you might be able to cut back.
Once you have this information, it’s time to take a hard look at where you’re spending your money and see if there are any areas where you can cut back. Perhaps you’re spending too much on office space or inventory. Maybe you can get by with a smaller staff or save money by outsourcing to contractors rather than hiring full-time employees.
Whatever the case may be, find ways to reduce your expenses so that you can free up some cash flow.
Solution #4 – Better Inventory Management
If you’re in a business that involves selling products, then it’s important to have a good handle on your inventory. After all, if you overstock your shelves, you’re tying up valuable cash that could be used to improve your cash flow.
There are a few different ways to manage your inventory more effectively. First, you can use just-in-time inventory management, which means only ordering products when you need them. This will cut down on the amount of cash you have tied up in inventory.
If your products are perishable, keep a close eye on sell-by dates and do your best to turn over your inventory quickly. This way, you won’t have to worry about wasted product or lost revenue.
Solution #5 – Review Your Payment Terms
If you’re not happy with your current cash flow situation, it might be time to review your payment terms.
One way to do this is to offer discounts for early payments. This will incentivize your customers to pay their invoices sooner, which will in turn give you the cash you need to keep things moving.
In a similar vein, many business owners like to pay invoices the second they land on their desk. While this is an admirable attitude, it may not be the best news for your cash flow. If you’re shelling out money before it comes in, you could be putting your business in a precarious position.
Instead, wait a little longer before paying your invoices – although, of course, it’s important that you do not miss any payment deadlines. You need to balance maintaining a healthy cash flow against maintaining positive supplier and contractor relationships.
Summary
If you’re having cash flow problems, don’t despair – there are several simple solutions that can help. It’s worth looking into automating your invoicing process, offering discounts for early payments, and examining your expenses to see where you can cut back. Better inventory management can also make a huge difference to your cash flow, as can reviewing your payment terms.
By implementing one or more of these solutions, you should be able to get your cash flow back on track in no time. And remember, the help of a professional accountant or financial advisor can be invaluable when it comes to solving cash flow problems. Don’t hesitate to reach out for help if you need it.
Book a free consultation here, to discuss your needs and learn how we can assist you with your cash flow and more.
