The strength of a home’s foundations can determine its longevity and survival in the face of calamity. In the same way, a start-up business should have strong financial fundamentals—an area where chartered accountants in Bristol can prove rather indispensable. Here are some helpful hints about properly gearing your business towards a successful and financially sound future:
Structure your business
Many business owners fail to take into account the benefits of having the right business structure, both in legal terms and when it comes to tax breaks. For instance, you should choose whether your company will be defined as a sole trader or a limited company (Ltd). Many professionals recommend the former since it comes with more tax benefits.
You should set long-term goals for your business even as you’re just beginning as this will significantly help you map out your strategies in a stable, linear direction. If you don’t have specific end-goals in mind, you will be less likely to make informed decisions and stick to them, whereas with long-term goals on the horizon, your choices can be more streamlined and attuned to whatever it is you intend to accomplish.
Manage your Cash
An article on Business Matters states that for small businesses, especially start-ups, knowing how to manage one’s cash flow is vital:
Often, there’s a false belief that all will be well as long as the accounts show a profit at the end of the year. Unfortunately cash and profitability are not the same thing. The ability to collect cash and pay bills, employees and owners is the lifeblood of every business and continues to be a major headache for SME’s. Large corporates are squeezing smaller businesses with longer payment terms – while it used to be an average of 30 days, big companies in some cases are now putting in place payment terms of up to 90 days.
Get the right help
Very few start-up businesses survive without investing in the right tools and professional expertise. For one, you can look into accounting or bookkeeping software tailored especially for your business needs. You can also rely on the services of reputable accountants in Bristol like Wormald and Partners Accountants.
Do not underestimate the power of effective financial planning for your business. While success does not depend solely on stable financial capacity, it is nevertheless an invaluable asset in helping your enterprise grow.
(Source: Starting up your small business – financial considerations, Business Matters)