6 Top Tips to Improve Your Businesses Finances

Being in business can be a costly affair, and it is crucial that business owners are able to balance and manage finances in order to keep their company thriving, or at the very least, afloat.


If you feel like you need a little bit of help in this department, then you will not be the only one!

This piece will look at some top tips that can help you improve your business finances to ensure you are on the right track to success. Read on to find out more!


"If you fail to plan, you are planning to fail!" – Benjamin Franklin 

1.  Make Sure You Have a Clear Business Plan

Planning is often a crucial aspect of pretty much anything you want to undertake, whether this is renovating a house, organizing a holiday, or beginning a new business! Getting a plan in place not only will help you notice where your shortcomings might pop up, but it will also help you determine your goals and how you plan on achieving them.


A key part of making a plan is that it should leave no stone unturned, which is particularly important when it comes to finances. You do not want to be faced with a bill you need to pay that you had not foreseen or need to take out a loan that is not feasible.

Make sure you plan for the expected and the unexpected to allow you to have all of your bases covered as much as possible.


2.   Keep Your Eye on Your Finances

Humans have a tendency to overestimate or underestimate, and the truth is unless you maintain exceptional diligence on your finances, you are going to be doing yourself a disservice.

Making sure you know exactly where your finances are on any given day will influence everything for the better. It will help you know if you can make a purchase and if you can afford to invest, save, or create discounts. Leaving it up to your brain to remember roughly where you are is just asking for trouble that you do not need.


Top Tip – Check your finances every single day and for every single decision!


3.   Keep Up to Date Accounting Records

Whatever you do, do not leave your accounting to the last minute. Not only does this make everything extra stressful, but you could also end up losing payments from late clients or customers, or you could forget to pay your suppliers on time. You may even forget to pay yourself! This is not only inconvenient for everyone involved, but it will also not give you an accurate account of the finances you have available or what you owe.

The easiest way to keep on top of your finances is to invest in an accountant, and if you have a particularly large business, you might want your own department! Speak to Poe Group Advisors for some more information.


4. Focus On Cutting Costs Where You Can

Cutting costs on overheads or on services or items that are not deemed essential can help keep your finances looking healthy. This is not to say that you should sacrifice certain things that make your or your employees' lives much easier, especially if they save you time, but having a strategic thinking process about whether you need an office, for example, or whether employees can work from home could make a massive difference to your overheads. Not just for the building, but for the added office extras as well.


There is a strong argument to suggest that employees work much better outside of an office,

so that option could be a win-win for everyone. 


5.   Tackle Problems as They Happen

Financial issues are the last thing that businesses want, but they do happen – it is just part in parcel. What you do not want to do is avoid them and avoid them until they get worse, or even less desirable, unmanageable.


Keep on top of any financial setbacks as soon as you have them, and create an action plan to work your way through to the end of the tunnel.


"A big business starts small" – Richard Branston  


6. Keep on Top of Stock Control

Stock is a crucial aspect of any business, whether this is specific products or providing a service. If you have to invest in stock ahead of time like many businesses do, keeping on top of what you have and what you do not have will allow you to make sure your capital is not tied up when it does not need to be.

Make sure you have a system set in place that will allow you to keep a tight lease on what is happening with your stock so you can make your investments wisely and keep capital free and easy for when you need it the most.


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