Are you a small to medium-sized business owner in need of valuable finance tips? Well you’re in the right place. Our team of accountants specialises in crunching the numbers so you can stay one step ahead in the business game. As the old adage goes, “Failing to prepare is preparing to fail,” and we’re here to save you from unnecessary headaches with our expert SME business finance tips.
Our credentials? From marketing agencies and musicians, to creative tech companies and ecommerce, we help all kinds of creatives achieve their business dreams through expert Xero accounting and sound financial strategy.
So here are some of our SME business finance tips to take your business to the next level…
Have a Strong Financial Plan
A sound financial plan provides a roadmap for your business, helping you anticipate expenses, identify potential income streams, and set realistic goals. It may seem obvious, but you would be surprised how many businesses simply resort to ‘winging it’ and lack a clear financial strategy, especially if their business has seen quick growth. Being financially smart and planning ahead is essential to staying competitive and keeping your business afloat.
But from monitoring and reviewing your business accounts, reconciling your payments, keeping up with your tax obligations and making future financial projections – it can all get a little bit complicated. So if numbers are not your strong suit or you simply don’t have the time, then you can always hire accountants to do the financial heavy lifting for you.
Keep Your Accounts in the Cloud
If you’re not using cloud accounting, then you really are stuck in the Stone Age. Platforms like Xero offer numerous benefits for your business, enabling you to access your financial data securely anytime and from anywhere, giving you real-time visibility into your finances all at the tap of a finger.
Automation Is Your Friend
Why spend time on mundane business tasks when it can all be done for you?
There are very helpful apps that can automate your finances in no time at all, allowing you to focus on the bigger picture of your business. The functionality of these helpful tools varies from the likes of GoCardless, which helps automate collecting payments, to Fathom, which gives you powerful analytics reports and financial forecasts in just a few clicks.
And the best part? They can all be integrated with Xero making your accounting life even easier.
Budget, Budget, Budget
For a lot of small to medium sized businesses, the question of cash can be an issue. Whether you are just starting out or a seasoned business there are times that the cash can get a little tight. You may not be able to secure funding, have poor cash flow, or have overspent on inventory.
Creating and sticking to a strict budget is fundamental to good business management. Knowing what you can and cannot afford and monitoring your cash flow is vital in making savvy financial decisions and ensuring you stay on top of your bills. Using cashflow forecasting software is an excellent way to make sure that you have enough money in your accounts and plan ahead in your future spending.
Invest in Your Growth
Don’t just let your business plod along without a clear growth plan. As investing in strategies to expand your business will turn your SME into a much bigger enterprise. From investing in digital marketing to get your brand’s name out there to diversifying your product line, finding new avenues to grow is how to make (and keep) your business a success.
Protect Your Assets
Now we are not saying that you shouldn’t have faith in your business but it is always wise to safeguard your personal assets. Structuring your SME as a limited liability company rather than a sole proprietorship can help protect your personal assets in case of financial downturns.
Consider a Business Loan
Getting a loan may seem scary, particularly if you are just starting out, but they can be extremely helpful if you are in need of some extra capital. Always remember to keep on top of your bills and have a good line of credit so you can secure a loan if the time comes.
Don’t Be Afraid to Get Some Help
When you have built your business from the ground up, letting go of the reins can be difficult. But knowing when you need help is what sets successful business apart. Here at Raedan we are Xero accounting experts that can keep your businesses accounts in check and help you make financially informed decisions to grow your SME.
Looking for more SME business finance tips and want help fine tuning your business accountants? Then get in touch with us now. We are expert accountants here to take the stress out of your finances so you can get on with the more creative stuff.