For start-up businesses there are many things to consider when beginning the setup of your enterprise; from the quality of your product and/or service that you are offering, to finding experienced staff, and marketing your brand. The success of a start-up business is reliant upon many different areas but none more so than your finances.
When setting up a new business it is important that financially you get off on the right foot.
Finding the right accountants or outsourcing to a business finance specialist is often the step many start-up business owners take. The knowledge and expertise of a finance expert can ensure that all financial aspects are well-managed and taken care off.
If you do however wish to manage your business finances in-house, then it is important that you are aware of exactly what requires your attention.
Below are the vital areas of your business that should never be neglected…
Whatever your business, it is a legal requirement that you record all financial details of your business.
Well kept books should provide a clear insight into the financial footprint of a business. From every big deal to the smallest travel receipt handed in by an employee, it is a legal requirement that everything is recorded. Bookkeeping is often a time-consuming task that is better outsourced to a specialist.
Cash Flow Management
Having enough funds to cover all outgoing expenses is crucial which is where good cash flow management comes in.
From regularly monitoring incoming and outgoing expenditure to ensuring monthly business rent fees and payroll can be covered; cash flow management is essential to your businesses survival.
Having an appropriate amount of funds and even a cash cushion to prevent debt is also a good, preventative measure. With regular cash flow management you can stay on top of all finances, deal with overspending and even determine where savings can be made.
However many members of staff you employ, you have a legal obligation to ensure that you are at the very least paying minimum wage. Setting up payroll, ensuring tax contributions are made and that student loan fees are taken is essential.
It is also important to ensure that HMRC are provided with accurate information. Payroll is very complex and often additional factors including bonuses, sick pay and maternity leave can easily leave you confused. Consider investing in the right software or seeking advice from a payroll specialist to avoid any errors.
Invoicing your customers may seem simple enough but it is all too easy to fall behind, particularly with slower moving customers.
From making your terms and conditions clear, to setting a payment date (often within 30 days of receipt of the invoice) to offering an incentive to encourage earlier payments; it is important to do as much as possible to keep on top of invoicing. Loosing track of invoices could affect your business and leave you struggling financially.
Get a system in place or consider the support of an invoicing specialist who will keep on top of it all; dealing with invoices in the right way could make all the difference to your business.
Good management of all of the above will ensure your business runs smoothly and is less likely to face any financial disasters. Have you ensured that the financial side of your business is running smoothly?