Get your business finances in order for the New Year
As we wind down to the end of the year and turn our mind to Christmas parties, pantomimes and celebrations with the family it’s easy to let the business take a back sit. However, now is actually the perfect time to take a look back on your business’s financial performance over last 12 months. It’s also an ideal opportunity to set some business goals to achieve in 2020.
This may sound somewhat of a chore, so to help you on your way our Debt Recovery team has put together some helpful tips on how to get your finances in order before we see this year out.
1 – Review your cash flow
As you know cash flow is vital for the survival of a business. Look back over the last 12 months and identify how much cash was brought in, how much was spent and how it was allocated. This will give you a better idea of how your business is doing financially. Once this has been achieved, you can look at investing activities, financial activities and operating activities so that you have a well-rounded view of your cash flow.
2 – Look at the business plan
You may think you are completely parfait with your business plan but when was the last time you actually looked at it properly? It’s a good idea to go back and reacquaint yourself with your goals, objectives and strategies to give you an idea of where you are. Identify areas you are underachieving in and put together a step by step plan of how you are going to get your finances in order over the coming months.
3 – Settle accounts
This is an obvious one – but an important one! Make an effort to settle unpaid accounts. Collect all outstanding bills so that you have more revenue for the start of 2020. It’s important to tie up loose ends, plus it can make your taxes all the more easy come April.
Having a strict credit management policy is key to keeping the cash flow coming into the business. Follow this simple credit control procedure and minimise the chance of debt recovery.
4 – Set some new goals
Goals keep you motivated and give you something to focus and work towards. Setting effective and achievable business goals is at the heart of any good business goal strategy. Remember to keep goals SMART – Specific, Measurable, Achievable, Relevant, and Time bound.
5 – Analyse reports
Now is a good time to run reports on cash flow, profit and loss statements, and a balance sheet to identify where you need to improve your business. These reports will help you identify what areas you need to adjust in order to improve your business finances.
6- Keep up to date with changes in the law
It is vital that you keep on top of any changes in order to avoid falling short of the law. We understand the need for businesses to ensure fluid cash flow; therefore, we provide a service that helps your business collect unpaid debts as quickly and efficiently as possible.
To help take the stress out of debt recovery we offer a fixed fee service that enables you to gain maximum results whilst having total control over your expenditure.
So there you have it 6 quick tips on getting your business finances up to date before the new year. Now you can go and enjoy a mince pie. Merry Christmas!
For more information contact Francesca Damario on 0333 400 4499 or email Francesca.damario@cognitivelaw.co.uk