Tips for managing your business finances
SP Solutions have a wealth of experience in providing business planning services for small to medium-sized businesses at all stages of their business journey. Today we are sharing the top three knowledge areas to focus on to help manage your business financials effectively.
Learn how your industry impacts your cash flow
When you understand your industry, you can better be prepared for the obstacles and industry trends that impact cash flow. For example, SP Solutions provided business planning services to a wholesale business, where the long logistics process when ordering stock from overseas often resulted in lengthy delivery timeframes. This process resulted in the business spending cash up to six months before the sale period, leaving the client funding six months of working capital.
SP Solutions developed a growth strategy based on three-way cash flow analysis and forecasting, placing the client in a position to negotiate with suppliers and reducing the time between purchasing goods and making sales. This type of industry knowledge can make a significant impact on your day-to-day sales and long-term financial position.
Understand your numbers to succeed at planning
Having a good understanding of your numbers is crucial to any type of business planning. When business owners have a deep understanding of the business’s numbers, it can provide clarity around making decisions that impact each area of the business. Our business planning services have helped businesses learn how to check their numbers regularly and understand what they mean.
SP Solutions can teach you how to gain essential insights into your numbers in various ways. Businesses might choose to stay on top of their numbers with the use of technology via a cloud-based accounting program; or they might prefer to use an accountant who can provide valuable insights. The thorough organisation of important documents such as financial statements and tax returns will improve your bank’s confidence in your ability to manage a new loan effectively.
Grow by delegating
When you are a busy business owner, you have to wear many hats, which sometimes leads to feeling overwhelmed when trying to juggle too much. It’s not surprising it feels stressful when you have to deal with day-to-day tasks, manage projects and stay on top of your finances too. SP Solutions often see business owners in this position, and part of our business planning services are focused on teaching business owners how to delegate. First and foremost, engaging an accountant to help manage the financial side of your business is a great first step. Having the insights of an accountant means you can run your business more meaningfully and focus on the aspects of the business you love the most.
When you begin delegating, it will feel challenging, you might even feel like it’s more trouble than it’s worth, but the long-term impact it will have on your ability to grow your business will soon be apparent.
SP Solutions can offer a range of services to assist businesses of all sizes. Get in touch and let us help you achieve your personal and professional goals.