Top tips on man­ag­ing busi­ness fi­nances

The Oban Times - - Business -

AT BUSI­NESS Gate­way, Ar­gyll and Bute, its team of ad­vis­ers can help with a range of is­sues. Here, ad­viser Ann Scott shares her top tips on how to man­age your fi­nances:

‘Con­trol­ling and prop­erly man­ag­ing your fi­nances is an es­sen­tial busi­ness dis­ci­pline that will ul­ti­mately sup­port your long term growth and devel­op­ment.

‘ You may have turned your hobby or pas­sion into a busi­ness which is great, but you also need to earn money. This should never be for­got­ten so don’t be shy when dis­cussing prices and pay­ment terms, prefer­ably in ad­vance.

‘Noth­ing kills your cash flow quicker than not get­ting round to in­voic­ing. Pay­ments made for work car­ried out is the lifeblood of your busi­ness and late in­voices can cause de­lays and in­creased bank charges so make sure you in­voice on time, ev­ery time.

‘A mis­take that many peo­ple make is con­fus­ing turnover with profit. Sep­a­rat­ing busi­ness and per­sonal fi­nances is cru­cial so you’re never tempted to think you’re richer than you are. By cre­at­ing dif­fer­ent pots you’ll find this eas­ier to man­age and will keep things in per­spec­tive.

‘Ul­ti­mately, be­ing fi­nan­cially sta­ble in­volves a num­ber of el­e­ments. It means keep­ing ac­cu­rate fi­nan­cial records which is not only im­por­tant for the over­all man­age­ment of your busi­ness, but is key to sub­mit­ting an­nual ac­counts. It’s also good to re­mem­ber that while an up-to- date bal­ance sheet has to be sub­mit­ted to Com­pa­nies House, HMRC and share­hold­ers, it can also be used as a tool to help you an­a­lyse and im­prove your busi­ness. Some key points to keep in mind:

‘There are al­ways great deals to be had if you are pre­pared to ne­go­ti­ate and shop around on a reg­u­lar ba­sis.

‘Run a tight ship by know­ing ex­actly how much is com­ing in and go­ing out. If your busi­ness is small, you should be able to say on a day-by- day ba­sis how much the busi­ness has re­ceived.

‘It’s im­por­tant to choose the right bank for your busi­ness. Make sure you know the bank’s in­ter­est rates, charges and fees and what fa­cil­i­ties are on of­fer.

‘Look­ing af­ter your fi­nances also means de­cid­ing whether you need fund­ing, where you can find it and how much you might need. We can help you find the right fund­ing av­enue for your needs.’

MONEY MAT­TERS: Busi­ness Gate­way ad­viser Ann Scott

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