It’s the New Year and if you’re in charge of a business then it’s likely you’re already looking ahead, hopefully to a brand new year that will include solid business growth.
We all know that planning for success is key, but it can be difficult to know exactly where to begin when it comes to business growth planning, particularly if you wouldn’t describe yourself as a “numbers person”.
Luckily, we at STB Accounts & Bookkeeping are here to help, with three simple and reliable numbers-based methods you can put into practice straight away, helping your business boom in 2018 and beyond.
Digitise your numbers
Our blog post last month focused on Making Tax Digital – and with very good reason. HMRC are focusing their efforts on “a transformed tax system and the end of the tax return by 2020”, meaning your business will soon need to be compliant with a host of new regulations.
We strongly recommend that you get ahead of the curve by investing in digital accounting software. Though this may sound daunting, particularly if Excel spreadsheets are as technical as your business currently gets, you’ll soon be glad you did.
Why? Not only will your accounting software streamline your invoicing process (meaning faster payments!), you’ll be more than ready when Making Tax Digital launches. You’ll also make it far easier for your accountant to help organise your accounts in preparation for digital tax submissions.
Complete your tax return
This is such an easy task for businesses to put off, particularly when work is piling up. However, not only will you avoid fines by completing your tax returns on time, but an informed understanding of the tax you need to pay will be immensely helpful for planning ahead and making sound business investments.
Remember that your personal tax return is due by the end of January, while business tax returns are due nine months following your year end. (If you’re worrying about being able to get your tax return completed on time, don’t forget that we can help! ).
Know all your numbers
Taking a long, hard look at your business in numbers may sound scary at first. Yet an understanding of your company’s critical figures is the surest way to ease the path ahead to growth, helping you make reliable and educated decisions.
If you’ve already implemented accounting software and have addressed your tax returns, you are already well on the way to knowing your numbers. But don’t fall into the inviting trap of thinking that’s all you need to know!
The good news is that taking time to regularly track your figures in key business areas will lead to a greater understanding of your outgoings, meaning you will be better able to meet your expenses and understand how and where to make savings if needed.
These key financial areas include operating cash flow, profit and loss, net income, sales, price point monitoring and gross margin.
We would also recommend monitoring your inventory figures on a weekly basis (in fact, why not make this a financial new year’s resolution for 2018?). Doing this will help you spot any issues in good time, as well as painting a clear and effective picture of what lies ahead for your business.
In short, tackling these easy financial methods should help you give yourself the most treasured gift for 2018 – precious peace of mind!
If you need any additional advice or assistance, remember that our friendly team at STB Accounts and Bookkeeping are always on hand to help, whatever the time of year.
In the meantime, we wish you a very prosperous 2018.