Thinking of starting your own business? Worried you haven’t got all your financial bases covered? Don’t worry the team here at GW and Co Accountants have got your back. We work with businesses, large and small, to ensure they run financially smoothly and avoid common mistakes and pitfalls.
Afterall, financial stability is the backbone of any successful business. That being said, whether you are thinking of starting a business or wanting to finetune your current business, it is important to think about the financial implications.
Here are our top four aspects to consider:
1. How much money do you need to start your business?
Start-up budgets are often wildly underestimated by new business owners. It is important to consider all aspects of expenditure right down to those staff snacks in the fridge! Every little adds up and it is easy to get swept up in the excitement. A start-up budget and thorough plan is essential and can include money for things like licences, permits, inventory, equipment, and rent.
2. How much money do you need to keep your business running?
It is important to know what your running overheads will cost, this includes things like utilities, payroll, and marketing. Additionally, you must know when those one-off annual payments such as VAT, annual licence payments or subscription renewals will be scheduled for payment and remember to budget for them so your business does not become unstuck financially.
3. How will you generate revenue?
Do you know how you will generate your revenue and is the way you have chosen best suited to your business model? Options such as sales, subscriptions, and advertising are common ways for a business to generate revenue, but it is very important to be realistic. It is prudent when doing your financial projections to project on the conservative side in case issues arise or the business does not go the way which you anticipate.
4. What are your long-term financial goals for your business?
Even if you are just starting your business, it is never too early to look to the long term. Where do you see your business in five years or in ten and how do you plan on achieving your goals? Using tools for tracking retirement planning, rainy day/sinking funds and future investments into your business are essential for the longevity and success of your business.
These are four essential questions new business owners must ask themselves and consider. If you are feeling overwhelmed in regards to your business finances, it is wise to seek the help of a professional. A trained accountant can ensure your business finance strategies stay on track and advise if things become unstuck. They can also ensure you avoid common pitfalls and meet your payment deadlines for things such as tax and VAT.
The team here at GW and Co Accountants specialise in working with businesses to ensure they succeed and reach their full potential. We can help you set up your financial systems, track your expenses, and ensure you’re making a profit. We have an open-door policy and speak in plain English so that you fully understand every step we take. If you would like to take that first step to owning a financially savvy business, don’t hesitate to contact us.
