12 Jun 2023
When you’re dreaming about your exciting new business venture, the chances are that financial functions such as forecasting, reporting and submitting tax returns aren’t at the forefront of your fantasies.
However, as your business grows, these essential but time-consuming tasks will need to be addressed.
One solution is to outsource your financial functions to a professional accounting firm. This can free up your time to focus on the aspects of your business that you’re passionate about, while still ensuring that your finances are in good hands.
There are a number of reasons why businesses outsource their financial functions. Let’s take a look at some of the most common ones.
1. To Save Time
One of the most obvious reasons to outsource your financial functions is to save time. As your business grows, you’ll find that there are only so many hours in the day.
Outsourcing financial functions such as bookkeeping, invoicing and payroll can free up your time to focus on other aspects of your business. It can also give you more time to spend with your family and friends, or to simply take a well-earned break.
2. To Get It Right
Unless you have experience in finance, it’s likely that you’re not an expert in bookkeeping or tax returns. This means that there’s a risk of making mistakes that could end up costing your business money.
When you outsource your financial functions to a professional accounting firm, you can rest assured that everything will be done correctly. This will give you peace of mind and allow you to focus on other aspects of your business.
3. To Save Money
You might think that outsourcing your financial functions will be expensive, but in fact it can save you money in the long run. This is because accounting firms have the experience and expertise to get the job done efficiently and effectively.
In addition, outsourcing can help you to avoid costly mistakes that could end up costing your business money.
The expertise of a professional accountant can also help you to identify areas in which you can cut costs, allocate resources more efficiently or take advantage of tax-saving opportunities.
4. To Get Expert Advice
When you outsource your financial functions, you’ll have access to the expertise of a professional accountant. This can be extremely valuable, especially if you’re not an expert in finance yourself.
Your accountant will be able to offer advice on a wide range of financial matters, from bookkeeping and tax returns to forecasting and cash flow management. This advice can be extremely valuable in helping you to make the right decisions for your business.
5. To Focus on What You’re Good At
One of the biggest benefits of outsourcing your financial functions is that it allows you to focus on what you’re good at. When you outsource, you can delegate the tasks that you’re not so good at or that you don’t enjoy to someone else. This will free up your time to focus on the aspects of your business that really drive growth.
Remember that as a business owner, your time is a limited and extremely valuable resource, so it makes sense to focus it on the tasks that will have the biggest impact while leaving financial functions in the hands of a professional.
6. To Improve Cash Flow
Cash flow issues are one of the biggest – and most dangerous – problems that businesses face. If you don’t have enough cash flow, it can be difficult to meet your financial obligations, pay your employees or invest in growth. On top of this, you’ll find yourself constantly worrying about your ability to make ends meet, which can take a toll on your mental and physical health.
Outsourcing your financial functions can help you to avoid cash flow issues by giving you access to the expertise of a professional accountant. An accountant can help you to forecast your cash flow, identify potential problems and put measures in place to avoid them.
7. To Prepare for Growth
If you’re planning to grow your business, it’s important to make sure that your financial systems and processes are up to the task. If they’re not, you could find yourself in a difficult situation further down the line.
Outsourcing your financial functions can help you to prepare for growth by giving you access to expert advice. An accountant can help you to put systems and processes in place that will be able to cope with growth, and they can also offer advice on how to finance your growth plans.
Final Thoughts
Outsourcing your financial functions can be extremely beneficial for your business. It can save you money, help you to focus on what you’re good at and improve your cash flow. In addition, outsourcing can give you access to the expertise of a professional accountant, who can offer advice on a wide range of financial matters. If you’re planning to grow your business, it’s important to make sure that your financial systems and processes are up to the task, then outsourcing can help with this.
Whatever stage your business is at, outsourcing your financial functions is definitely worth considering. It might just be the best financial decision you ever make.
Book a free consultation here, to learn more about how our accounting services can support you.
7 Jun 2023
Scaling your small business is incredibly exciting, but there’s a lot to think about. It’s important to have solid rules and guidelines in place, and a clear plan to follow. If you’re ready to scale up your small business then read on for seven top tips to help you do it.
1) Hold Onto Your Values
Your values should always be at the heart of your business, so be careful not to lose sight of them as you scale up. After all, these values have been instrumental in helping you achieve success so far, so don’t sacrifice them as your company grows.
2) Identify Your Barriers
What is getting in the way of your growth? What could go wrong as you scale up?
Take a step back, put your emotions to one side and take an honest, objective look at your business. Do you lack funding? Are you experiencing cash flow issues? Do you have a high staff turnover rate? Are there problems with your current premises?
Identifying your barriers to growth is the first step to overcoming them so don’t be afraid to take a long, hard look at your business. Every business has its weaknesses, so don’t be disheartened by yours but instead view them as an opportunity to improve.
3) Run the Business You Want, Not the Business You Have
In order to scale up successfully, you need to bridge the gap between where you currently are and where you want to be. What works for you right now might break as you begin to grow, so it’s important to put systems and SOPs in place that will continue to work seamlessly as you scale up. Take a look at your cash flow, team, IT systems, workflows and supply chain to see what is going to creak or even break as your business expands, and prepare accordingly.
4) Build the Right Team
Leading on from the previous point, building a strong team of employees is an essential part of scaling your small business. You will need to take on more staff as you grow and ensure that they share your values. When hiring, place special importance on attitude and willingness to learn; you can teach an employee new skills but it’s very difficult to fix a negative mindset.
Staff morale is essential to productivity and a low turnover rate, so it’s in your best interests to create a supportive company culture that helps each team member reach their potential. Remember that making your staff feel seen, heard and appreciated goes a lot further than fancy merchandise or an extravagant Christmas party ever will.
5) Learn from the Competition
Study your competitors who have successfully scaled up – how did they do it? What worked well for them, and what could they have done better? How did they change as they grew? Your competitors constitute a valuable learning opportunity, particularly when it comes to business growth.
6) Stay Focused on Customer Service
The last thing you want to do when scaling up is antagonise your customers. You must remain consistent with the quality of your customer service; scaling up will do more harm than good if it causes all of your customers to flock elsewhere.
Of course, mistakes do happen but it’s important to rectify them as soon as possible, maintain honest communication with your customers and make them feel valued to keep them coming back.
7) Monitor Your Cash Flow
Many of the biggest challenges businesses face during the scale-up phase are cash flow related. Whilst you do have to spend in order to grow, it’s important to keep a close eye on your cash flow throughout this process so that you know where every penny is going. This way, you can identify and solve any issues as soon as they arise, and see off potential threats before they come to fruition. It’s also important to prepare an adequate cash reserve for emergencies and unforeseen costs so that bumps in the road don’t cause a total breakdown.
Summary
Whilst the scale-up phase can be challenging for small business owners, it’s also exciting and provides a great opportunity to build an even better business. Whilst we can’t promise that employing the above seven tips will make scaling your business 100% worry free, they can make the process significantly smoother and easier.
Book a free consultation here, to learn more about how our bookkeeping services can support you.
5 Jun 2023
Technology is a vast and ever-changing field which can feel intimidating as a small business owner. However, there’s no denying that digital tools present huge opportunities for entrepreneurs, if only they learn to harness them correctly.
The world is in the midst of a huge digital transformation and a paper published by Gartner Research suggests that every industry will be transformed by digital business by the year 2025. Therefore, it’s important to learn how to make technology work for your business and use it to increase performance and drive growth. Let’s take a look at how to leverage technology to improve your business performance and maximise growth.
Organisational Agility
In an uncertain post-pandemic world, organisational agility is more important than ever. When the covid-19 crisis first hit, the businesses who fared best were the ones who were able to remain agile and pivot as swiftly as possible. Research by MIT found that agile businesses also tend to grow their revenue 37% faster and generate 30% more profits.
Businesses who have a good knowledge of technology and are open to trying or innovating new solutions enjoy increased organisational agility. Scalable software subscriptions, CRM programs and intuitive digital marketing tools further help with this.
Real-Time Data
Financial management platforms such as Sage, Xero and Quickbooks provide businesses with accurate data that gives them a clearer insight into their financial situation, allowing them to make more effective and profitable decisions. Staying informed helps enormously with sustainable business growth, so this is a huge advantage for small businesses.
Meanwhile, digital marketing analytics can help you to grow your business by helping you identify which strategies work and which don’t, which enables you to attract more customers in the future.
Greater ROIs
The Federation of Small Businesses found that 85% of small businesses believe that investment in new technologies is a key factor in business growth. Technology allows you to get more from your staff by automating or simplifying processes to free up time and reduce stress. This is enormously helpful when it comes to staff morale, which is another key driver of business performance and growth. It also allows staff to use their time more effectively and focus on more important tasks. In fact, the Telegraph newspaper reported that businesses who adopt new technologies can see up to an 84% increase in productivity.
Low Up Front Costs
Many cloud-based platforms and applications have low up-front costs, which is ideal for startups and small businesses. Furthermore, cloud subscription services don’t come with ongoing maintenance or management costs, which further helps to reduce the financial burden.
Saving Space
There are several different ways in which technology can help businesses save space – and therefore money. Firstly, by permitting staff to work remotely, businesses can reduce the size of their office space and save money on rent, which makes a significant difference to their bottom line. Secondly, digitizing files greatly reduces the amount of storage space necessary, allowing businesses to repurpose that space or relocate to a smaller premises.
Accounting
Using cloud-based accounting software presents several benefits for small businesses. For one thing, these programs can help cash flow by making invoice management fast and seamless. They can also automate complex calculations and provide valuable financial insights into how your business is faring.
Summary
Advancements in business and financial technology present huge opportunities for small business owners to improve their efficiency and financial performance. Access to real time data can be used to improve marketing practices and make smarter, more profitable decisions. Meanwhile, more opportunities to work and collaborate remotely can improve productivity and morale whilst saving space and reducing costs. In the wake of the covid-19 pandemic not even the staunchest of luddites can deny the importance of technology for small business growth and performance.
Book a free consultation here, to learn how we can help you make better use of technology in your business.
1 Jun 2023
Hiring a financial advisor for your business is a wise move for your business, especially at the moment when great financial management is more important than ever, given the recession. But with so many financial advisors out there, how do you know which one is right for your business? Here are five top tips to help you choose a financial advisor who will transform your business and ensure that you achieve your goals.
1. Check their credentials
The first step is to check that your potential financial advisor is qualified and credentialed. There are many financial advisors who are not qualified, so this is an important step.
Some financial advisors may have a degree in finance or accounting, while others may be certified financial planners. Make sure you check their credentials to ensure they are qualified and actually know what they’re talking about.
Unfortunately, just about anyone can get online and claim to be a financial advisor, but not everyone has the qualifications to back it up!
2. Social Proof
Reviews and testimonials from other happy clients are a great way to gauge whether or not a financial advisor is worth working with.
Look for social proof in the form of positive reviews on their website, or see if you can find any testimonials from other businesses they have worked with. Don’t be afraid to contact said businesses to ensure that the reviews are genuine. This will help you get a feel for whether or not they are reputable and actually deliver on their promises.
3. Free Consultation
Most good financial advisors will be more than happy to offer a free consultation. This doesn’t just benefit you; a good financial advisor won’t take on a client if they don’t feel that they are the right fit. Be wary of anyone who wants to work with you without even speaking to you first.
During the consultation, be sure to ask plenty of questions and get a feel for their financial planning process. This is your chance to really get to know them and decide if they are the right fit for your business.
4. Make Sure They’re a Specialist
Working with a specialist has huge benefits for your business. They will have a wealth of experience and knowledge in their specific area, which means they can provide you with tailored advice that is relevant to your business.
A specialist will also help you to benchmark your business and understand how you’re faring in the context of your industry. Metrics such as costs, revenue and profit margins vary hugely from industry to industry. What might be a poor profit margin for one industry could be a big success for another sector, and it’s important to work with a financial advisor who understands this. Otherwise, you could end up making decisions based on inaccurate information, or losing confidence because you think your business is performing worse than it actually is.
5. Chemistry Matters
It’s important to like and trust your financial advisor. After all, you’ll be working with them closely and entrusting them with sensitive information about your business.
You should feel comfortable communicating openly with your financial advisor, and you should feel confident in their ability to help you achieve your goals. If you don’t gel with them, it’s probably not going to work out!
Final Thoughts
Choosing the right financial advisor for your business is critical, and it can be difficult to know where to start. By following these five top tips, you’ll be well on your way to finding a financial advisor who can help you achieve your goals. Remember that this is a significant investment, and one that will pay off extremely well if you make the right decision, so choose wisely.
Book a free consultation here, to discuss your needs and how we can help you transform your business.
Did you know we’ve also got a free downloadable eBook dedicated to the most common profit draining mistakes made by small businesses. Check it out here.
24 May 2023
Bookkeeping might not be the most exciting part of running your small business, but it is an absolutely essential task that undoubtedly plays a big role in your financial success. Bad bookkeeping can lead to a myriad of problems down the line, such as missing out on tax deductions or having to pay unexpected penalties. Meanwhile, great bookkeeping helps you to maintain control and visibility of your finances, plan for the future, and make accurate decisions.
What is Bookkeeping?
Bookkeeping is the process of tracking and recording all your financial transactions and is the foundation for all your accounting tasks. The end goal of any bookkeeping system is to have accurate financial records that you can use to make informed decisions.
Bookkeeping Terms to Know
Accounts Payable
Accounts payable are the amounts of money that you owe to vendors and suppliers. This typically includes things like the bills from the website hosting service or your office supplies provider.
Accounts Receivable
Accounts receivable are the amounts of money that your customers owe you. This includes things like customer invoices, deposits, and payments towards services or products that you provide.
Assets
Assets are the items that your business owns. This includes physical assets such as computers, furniture, or vehicles, as well as intangible assets like intellectual property or software.
Balance Sheet
A balance sheet is a financial statement that summarizes the assets, liabilities, and equity of your business.
Cost of Goods Sold
The cost of goods sold (COGS) are the direct costs associated with producing goods or services, such as materials and labor.
Expenses
Expenses are the costs incurred in order to run your business, such as rent, office supplies, salary, or advertising.
Equity
Equity is the amount of money that your business has earned through profit or reinvestment.
Liabilities
Liabilities are debt that your business has taken on, such as loans, credit card balances, or lease payments.
General Ledger
The general ledger is the main record of your financial transactions, and it serves as a master account book for your business. It includes all accounts for your income, expenses, assets, liabilities, and equity.
Journals
Journals are used to record financial transactions in chronological order. These include cash disbursement journals, accounts payable journals, and accounts receivable journals.
Reconciliation
Reconciliation is the process of making sure that your financial records are accurate and up-to-date. This involves reviewing transactions, statements, and other documents to verify that they match up.
Revenues
Revenues are the income that your business earns from sales, services, or other activities.
Payroll
Payroll is the process of calculating and distributing wages to your employees.
How to Get Your Bookkeeping Right
Now that we’ve established some basic bookkeeping terms that you need to know, let’s turn our attention to the actual process of getting your bookkeeping right. Here are some tips to help you get started.
1. Choose the Right Bookkeeping Software
There are plenty of great cloud software solutions and apps that make bookkeeping easier. Choosing the right one for your business will depend on a few key factors such as budget, features, and ease of use.
2. Set Up a Separate Business Bank Account
If you’re using the same bank account for your business and personal transactions, or two businesses at once, that’s a surefire way to make your bookkeeping far more complicated and frustrating than it needs to be. Setting up a separate bank account for your business will help you to keep everything organized and make tracking expenses much easier.
3. Automate as Much as Possible
Having chosen the right bookkeeping software, it’s important to take full advantage of its features. Look for ways to automate tasks like recurring bill payments, credit card charges, and customer invoices. Automating these processes can save you a lot of time and effort.
4. Stay on Top of Your Records
Bookkeeping is an ongoing process, so it’s important to stay on top of your records. Make sure to update your accounts regularly, reconcile discrepancies in your bank statements, and review any invoices or receipts.
5. Create a Process for Document Management
Accurate bookkeeping requires that you keep up with all of your incoming and outgoing documents. Creating a process for document management will help you stay organized and make filing your taxes easier.
6. Budget for Taxes
One big mistake that many new business owners in particular tend to make is failing to budget for taxes. Set aside some money each month so that when tax season comes, you won’t be caught by surprise.
7. Daily Records
A little-and-often approach to bookkeeping is the best way to ensure that you stay on top of your records. Make sure to keep a daily record of all transactions and reconcile your accounts weekly.
8. Track Expenses Carefully
Having a clear record of all your expenses can help you to identify any potential problems or areas for improvement in the future. Take some time each month to review and categorize all your expenses.
Conclusion
Bookkeeping is an essential part of running any business, and it’s important to stay on top of it by taking the time to understand the basics and setting up a system that works for you. With the right tools and processes in place, bookkeeping can be manageable and empower you to make smarter decisions, creating a stronger and more financially solid business.
Book a free consultation here, to learn more about how our bookkeeping services can support you.
18 May 2023
Business development is a critical part of any company, but it can also be very tricky. There are many things that can go wrong, and if you’re not careful, you can end up sabotaging your entire business. In this blog post, we’ll discuss six common business development mistakes to avoid so that you can make sure that you don’t fall into these traps.
#1 – Confusing Sales with Business Development
One of the most common mistakes that companies make is confusing sales with business development. They are two very different things, and they require different skill sets. Sales is about generating revenue through direct transactions with customers. Business development, on the other hand, is about creating long-term value for the company through strategic partnerships and relationships.
If you want to be successful in business development, you need to focus on building relationships and creating value for your company, rather than simply trying to make a quick sale.
#2 – Not Focusing on Your Clients/Customers
Another common mistake is failing to focus on your clients or customers. It’s easy to get caught up in the day-to-day operations of your business and forget about the people who are actually using your products or services. But if you want to be successful in business development, you need to keep your clients and customers at the forefront of your mind. After all, without them, you don’t have a business.
Think about what they need and want, and how you can help them. Build strong relationships with them, and always keep their best interests in mind.
By focusing on your clients and customers, you’ll be able to create much more value for your company in the long run.
#3 – Talking Too Much and Listening Too Little
In a similar vein, many companies make the mistake of talking too much and listening too little. When you’re trying to build relationships and create value, it’s important to remember that communication is a two-way street. You need to listen as much as you talk.
Make sure that you’re really hearing what the other person is saying, and take the time to understand their needs and wants. Only then will you be able to create something that truly meets their needs.
If you want to be successful in business development, start by learning to listen.
#4 – Confusing Busy-ness and Productivity
Another common mistake is confusing business with productivity. Just because you’re busy doesn’t mean that you’re being productive. In fact, you could be doing a lot of things that aren’t actually helpful to your business.
To be truly productive, you need to focus on activities that will create value for your company. That means identifying and pursuing opportunities, developing relationships, and creating new products or services.
If you want to be successful in business development, focus on being productive, not just busy.
#5 – Failing to Identify Your Most Profitable Clients
The 80/20 rule says that 80% of your business will come from 20% of your clients. So, it’s important to identify who your most profitable clients are and focus on them.
Many companies make the mistake of chasing after any and every client, regardless of whether they’re actually a good fit. But if you want to be successful in business development, you need to be more selective.
Identify your ideal clients and focus your efforts on pursuing them. By doing so, you’ll be able to create more value for your company in the long run.
#6 – Failing to Prepare
Last but not least, many companies make the mistake of failing to prepare. Business development is all about creating opportunities and then capitalizing on them. But if you’re not prepared, you won’t be able to take advantage of those opportunities.
Make sure that you have a solid plan in place before you start pursuing any new opportunities. It’s important to consult with experts, such as accountants and lawyers, do your research, and make sure that you’re prepared for anything that comes your way.
If you want to be successful in business development, always remember to prepare before taking any action.
Final Thoughts
In order to be successful in business development, it’s important to avoid common mistakes. Focusing on your clients and customers, listening more than you talk, preparing for any opportunity that comes your way – these are all essential pieces of the puzzle. By keeping these tips in mind, you’ll be well on your way to success.
Book a free consultation here, to discuss your needs and how we can help you avoid financial mistakes.
We’ve also got a free downloadable eBook dedicated to the most common profit draining mistakes made by small businesses. Check it out here.
