Accounting advice for developing a business
So, you already have a business. It’s performing reasonably well but it’s not clear how to take it to the next level. In most cases, developing a business without the proper strategy and financial planning can be risky. This post contains expert advice from our team on how to develop your business safely and effectively.
How do Chartered Accountants support businesses?
Chartered Accountants are held to high standards by the ICAEW (Institute of Chartered Accountants in England and Wales), which carries out ongoing monitoring of its members to ensure they are delivering the highest standards of the profession. In addition to their expected duties relating to accounts, tax, payroll, bookkeeping, forecasting, and more, Chartered Accountants provide bespoke advice to improve the financial health of businesses. This is directly due to their level of expertise and the resources available to them. For example, a Chartered Accountant will be up to date on any changes to tax regulations, helping the business access any tax relief it might be eligible to receive.
For more insight on the positive impact of a Chartered Accountant for small business operations, read ‘Why use a ICAEW qualified Chartered Accountant?’.
Accounting advice to develop a business
You should create a full set of KPI’s(key performance indicators) to measure. These metrics should be chosen based on the factors that make your business tick. You want to choose KPI’s that mean if you improved them your business improves. This ensures your efforts are focused in the right areas and therefore have the most impact, rather than potentially wasting time and resources.
If you don’t have sales, the bottom line is you don’t have a business. Understand your sales process, who you are selling to, your ideal customer, where your customers are, a pricing strategy etc. When setting sales targets, be ambitious but realistic. The goal should be creating a pathway on how to achieve your sales targets and measure those steps. They can then be reviewed and modified over time.
The very basis of your financial records lies in your bookkeeping. Improve your bookkeeping entries and you will instantly improve your financial records. You will have more confidence the records are accurate and will make more sense so translating the numbers back to business activities will become easier. No great business ever got there with poor bookkeeping.
Review all your business processes and make sure they are as efficient and effective as they possibly can be. Streamlining how you do things, using the best technologies, equipment, staff and will ensure you have the opportunity to be as productive as possible and improve your business. Jan McDermott Chartered Accountants provide a service for Xero implementation and training so businesses can make the most of the software.
This is a key financial tool that should be created and reviewed regularly to ensure you have funds to support business growth and expansion. A cash flow financial statement pulls all your strategic thinking together in one place.
Marketing and advertising material goes hand in hand with your sales target and sales strategy. While there is a great deal of free marketing that you can do, it’s important to have some amount of money put aside for a marketing budget. This will help your business get noticed and target consumers that fit your ideal customer profile. Establishing a brand will also help with business development, although this can take time.
Accountancy advice for business owners
As Wirral accountants serving Liverpool and other areas of Merseyside, Jan McDermott Chartered Accountants know what it takes for a business to succeed. A member of our expert team will be able to interpret your overheads, market position, business structure, and more in providing tailored recommendations. All the while, our statutory duties are performed quickly and to the highest standards. If you’re looking for an accountant for limited company support, get in touch today.