By Matthew Perry
Running your own business has plenty of unique challenges, from managing cash flow to ensuring your payroll runs as smoothly as possible. Fortunately, you don’t have to do it alone.
Like the best food recipes, our recipe for mastering your business is quick and simple. In order to make sure your new company is successful, just use these ingredients:
- Cloud bookkeeping software
- Dedicated advisor who can make a difference
- Cashflow plan
- Efficient company structure
- Organised app network
The Plan for Entrepreneurial Success
Millions of entrepreneurs join the ranks every year, searching for that recipe for success. We help hundreds of self-employed people set up and manage their businesses every year, so we know a thing or two about ensuring your business gains the right footing from the word go. Here is how you can give your business the edge it needs.
Cloud bookkeeping software
Before computers, businesses used this archaic instrument called paper to record and file all of their expenses and invoices. Then they started using computers, with programs such as Excel. In these fast-changing times, technology is a business’s best friend. The best solution for your business to take control of your finances while on the move is through the use of cloud bookkeeping software. It really is great for any business, with a large variety of software providers offering a wide range of price points that work for anyone.
A good bookkeeping software will create an instant communication bridge between you and your trusted advisor (who we’ll be discussing later). It creates a shared window into your company finances that you and your advisor can see and make changes to in real time. No more emails or wading through old spreadsheets. Everything is stored in one place which you can access on all of your devices, whether it is through a web browser or mobile app.
You will also benefit from machine learning and artificial intelligence, as businesses using the software can grant the provider access to certain information that enables them to improve the automation of their software. This is a time saver since many software learn how you match transactions to expenses and sales, as well as additional benefits such as improved data security.
Software providers need to make sure they are offering compliant solutions that meet the legislation being introduced by Making Tax Digital. This means that’s one less thing for you to worry about when tracking your finances.
Your business needs a strategic advisor who can focus on the financial and administrative structure so that you can focus on providing your services to your clients. When considering who the best advisor for your business would be, look for expertise in these 3 things:
Advisors are there to help with your business and should not be expected to be experts in your industry – they don’t need to be! That’s the beauty of it. They just need to be able to provide bespoke support on a one-to-one basis and give you advice in language that you understand. The advisor takes care of the work you don’t have the time or understanding to deal with so that you can focus your industry expertise on your services and fast-track your business success.
No business plan is complete without a cashflow forecast. After all, you can only be financially rewarded if there are sufficient funds in your business and it is not unheard of for companies to fail because the cash has run out.
One of our tips is to use good bookkeeping software, which we discussed earlier. Here are six other tips:
- Get paid quickly – issue invoices ASAP and make use of direct debits and standing orders for regular cash flow.
- Buy the right amount of supplies at the right time
- Regularly review your stock
- Save tax – meet your accountant once or twice a year
- Build a cashflow forecast (and keep it updated)
Efficient company structure
Make sure your company is set up in a way that means you get the most out of it. Your company structure will affect how much tax you pay, which directly impacts how much money you are able to take home at the end of each month.
It is vital you review your financial data at the end of each tax year. This includes:
Reviewing this key data is imperative to be able to make strategic plans for that tax year that control your liabilities.
Organised app network
Make use of apps and automation! Everyone carries a mobile phone, and if it is a smartphone, you have a portable workstation in your pocket. Use it to your advantage and get to grips with some apps that can help organise your daily business.
Here are some business processes you can find apps for (and some examples):
- Customer relationship management (CRM)
Being able to work on the move is only as useful as the tools you choose to use. The more apps you can find that integrate with one another the better, as your work will become more fluid.
So, there we have it – Rodliffe Accounting’s recipe for success for Entrepreneurs. If you want a taste, get in touch and we can show you all of the ways having a winning formula can make you increasingly profitable.