If you want your business to achieve strong financial growth, you must implement efficient financial management, possibly outsourcing to a management accounting service.
Finance in the company has to be controlled, planned and monitored so that your business objectives can be achieved. By taking control of the financial management, you will maximise resources, create long-term financial stability and be able to provide a quality service to stakeholders in the business.
There are some things you can do to ensure that your company is financially efficient, and here are seven pointers:
1. Cash flow management is crucial for business success. Monitor stock levels, sales, cash in the business bank account and whether the company is achieving objectives which have been set
2. Credit management is also necessary to keep a company afloat. Customers who pay their bills late will create problems for you, so issue invoices immediately, with clear payment terms for clients so that they are aware that they have to pay promptly, and any penalties for late payments
3. Maintain your accounts so that you are always aware of what you have available. A solid bookkeeping system will help you to monitor the credit lines given to clients and whether prompt payment has been made. Once you have implemented a good accounts management system, you will be aware of any payments due to your suppliers, able to keep track of any expenses that can be claimed, and in a position to apply for finance
4. If you think you may be facing financial difficulty, tackle the problems immediately rather than let them get much worse. Seeking help from a professional who may be able to make some suggestions to improve finances is advisable, like improving cash flow management
5. Set up a recordkeeping system that will help you to remain compliant with HMRC. Failure to pay taxes can lead to penalties and interest being charged, which is a drain on your finances
6. Tackle overheads and spending within the company. Review all expenditure to see what is necessary and what can be eliminated. For example, energy-saving measures may help to reduce the overall expenditure of the business premises.
7. Lastly, considering outsourcing for some functions may also reduce costs, while releasing resources from other duties.
There are many ways to create a business that’s financially efficient, with various areas to tackle. If you would like to discuss the action you can take to improve your company finances, contact us to make an appointment for an informal chat.