Face the Finances
The last thing that you should do as a business owner is shy away from your financial position. Cashflow, if it is not monitored, can quickly drain away and leave you with a drip, rather than a river.
Unfortunately, for many business start-ups cashflow can quickly be neglected and by the time there is a problem, it is already too late.
Don’t become a cashflow casualty.
Monitor it closely and ensure that you have sufficient working capital within your business to cover your outgoings. You need to plan ahead for your outgoings, so that you are not searching the sofa when those bills come in.
Monitoring comes from up to date bookwork (showing your ‘actual’ figures) and we also recommend a 12-week rolling Cashflow Forecast, which is a great, easy way to ensure you know what is due to be paid/when and what income you need to cover this. It allows you to see the regular costs, as well as those unexpected outgoings.
One area which is often overlooked by so many business owners is HMRC liabilities, if not handled appropriately these can quickly spiral out of control and leave you with heavy fines.
Plan for your liabilities, ensure that when business is good that you allocate finances to your upcoming liabilities. Avanti proactively inform you of your upcoming important filing dates and your liabilities, are able to provide easy to use Cashflow Forecasting tools and providing training. We don’t just do the books, we offer you advice throughout the year to help you get the most from your tax allowances.
If you find yourself in a position where you cannot pay your creditors or tax liabilities, the worst thing you can do is hide under a rock, you need to face the situation and inform the relevant parties. In some circumstances you may delay your payment or arrange a payment plan. It is better to inform prior to the deadline, than allowing it to pass. Remember once you are fined by HMRC, the outstanding sum will accrue interest and you will now be on their radar.
If you are in a situation where cash is dripping rather than flowing, Avanti can help you turn the tap back on. Give us a call to see how we can help you (08000) 388 799