All businesses are different, whether it is size, sector, location,
or speciality – there is always an element that sets one apart from the
other.
But there is one thing that is common to every business in every
country and sector around the world – finance. It determines the income
coming in and the expenditure going out, inputs and outputs, the size of
an organisation, and more importantly if it will be financially
successful and sustainable.
Before making the decision to branch out and step into the unknown,
it’s important to understand the role the finance functions play in the
world of business. It forms the basis of effective business management
and will ultimately affect the bottom line.
Five Top Tips
1 Be realistic
Many businesses that succeed don’t make a profit for the first couple
of years. If you are hoping to get rich quick, you may need to think
again.
2 Expand your knowledge
Consider a short course on the fundamentals of finance. Training will
be one of the best investments you’ll make and you’ll find yourself
using your new skills and knowledge on a daily basis.
3 Be aware
Tax legislation changes at a never-ending pace and it’s important for
new businesses to keep up. For example, the new reporting system for
PAYE (RTI) introduced in April this year will affect the way employers
submit tax information. These are the types of issues you’ll need to be
aware of.
4 Have a plan
Implement an accounting system and make sure it works. The law
requires all businesses to have proper accounting records. By doing this
you’ll manage your business better and help stimulate business growth.
Startups that don’t do this put themselves at a serious disadvantage.
5 Talk to an expert
Train up and read as much as you can but at the end of the day – don’t be afraid to ask for help from a professional accountant.
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