White Collar Consultants Limited

So much more than tax

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accounts@wcc-ltd.co.uk

Five best tips for business owners

05/03/2015

1. “Who wants to live for ever”
Although there are some of us out there who think we are immortal. We will all pop our clogs at some stage. So why not plan for your inevitable parting while you can.
Ensure that your will and life insurance are kept up to date.
Plan the future of your business now.
Ask yourself, will I sell or leave it to my next of kin? Both these options have very different tax implications and planning for each should be done as far in advance as possible to ensure optimal results.

2. Write a business plan.
This should be done at least every three years.
Because of the in depth review of your current situation and the deliberation of your targets during this process, eclipsed obstacles or dilemmas are brought to light and avoiding such pitfalls is made easier.
In the current economic climate many more businesses rely on lending to bridge the cash flow burden but no lender will give your application a second glace if not accompanied by a thorough business plan.

3. “Money, money, money”
Your cash flow can be your demise if not managed properly and many profitable businesses end up calling it a day because of this beast.
So don’t procrastinate , prepare, update and evaluate your cash flow forecasts regularly.

Most professionals suggest a minimum of quarterly but it is better done monthly and if your cash flow position is not very  favourable the daily or weekly option is optimal.
Once you get into the habit of using your cash flow forecast you will wonder how you ever got on without it.

4. Statements and meetings.Business Owners
Many business owners don’t seem to appreciate the added value of sitting through a management meeting once a month.
This opportunity can be used as a platform to discuss the periodic financial statements and management packs that your accounts department should produce on a monthly basis.

But once this culture is implemented  it will soon become apparent that;
– Planning is easier and therefore your tax liability can be reduced
– Performance improves resulting in increased revenues.
– Expenditure is composed and by so doing your profits increase.

5. The umbrella fund.
Every Business no matter how big or small have a raining day.
This can come in the form of unexpected expenses such as breakages, floods or fire.
“But I am insured I hear you say”. No insurance will cover 100% of your losses incurred and therefore it would make sense to plan for this in advance.

Put a little aside each month in a slush fund account to weather the storm.
If you are an astute business owner and need help implementing any of the above,

contact White Collar Consultants on accounts@wcc-ltd.co.uk and we will help where wherever we can.

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