There are a number of reasons for running your own business. It may be the flexibility of working hours, the opportunity to work for yourself or a wish to build something to pass on to the family. But whatever your driver for starting out, one thing is for sure, you’re most likely not doing it all for free. As well as securing a regular income for you and your employees, you’ll be looking to build value into your business. This value is called the equity.
It may not be a question that you thought you’d have to ask yourself, but as a Director, part of your legal undertaking requires you to ensure that the business remains solvent and trades within its means. Operating outside of these boundaries could see the company being declared insolvent, struck off and you, as a Director, being penalised or disqualified – meaning you cannot be a Director again.
If you have responsibility for budgeting in your business, the events of the last couple of years will undoubtedly have kept you busy and will probably have thrown some challenges your way. You’re not alone. Businesses everywhere are struggling to set and maintain accurate budgets, beset on all sides by world events and economic trends.
So how do you budget effectively, and more to the point accurately, with so many external influences at play?
As costs continue to rise, some employees may be considering ways of increasing their household incomes to help manage the pressure. One means of achieving this could be seeking additional employment, over and above their main/primary job. How should you prepare for the inevitable discussions and what can you do to support your staff?
With an uncertain economic outlook, it’s a great time to get on top of company finances and refocus on your budget plans. But where do you start with budgeting and what should you look out for? Our handy 3 step guide will help you plan and execute your budget and stay on top of your finances.
Whilst we’re happy to act as a virtual accounts’ office, we always say to our clients that it’s fine to outsource all your accounts work but please don’t outsource your thinking. Keep an active understanding as to what is happening and remain aware of your obligations. A recent tribunal between a company owner and HMRC has demonstrated the importance of knowing what’s going on – even if you choose to outsource.
Limited companies have always been a very tax efficient vehicle for companies and their Directors, but various changes in other taxes and allowances mean this may not continue to be the case.
Company bosses are being urged to plan for the increase in energy costs over the next 12 months to avoid ‘nasty shocks’ when contracts end. With most commercial contracts for energy running over longer periods than similar residential supplies, there is concern that company bosses may ignore the potential impact of sizeable price jumps in the meantime.
As a business owner and/or company director, you have certain obligations around the proper collation and retention of company accounting records. Whilst HMRC and Companies House have changed their stance on digital copies compared to paper versions, the requirement to retain copies of key financial documentation remains.
At a basic level, a cashflow statement details the movements of money in and out of a business over a defined period. The cashflow statement enables you to monitor bank balances, allocate reserves, manage investments and plan significant procurement.
September 2021 marked the return to normal business life for many, following the hiatus caused by Covid, multiple lockdowns and the work from home rule. But as we head back into the office, into networking events and even begin entertaining colleagues and clients again, it’s perhaps a good time to remind ourselves of some of […]
Whether physical ‘hard cash’ or merely digital numbers moving between bank accounts, cash is king and therefore good credit control is the first step to maintaining good cash flow in your business. Since 1967 we’ve helped hundreds of businesses to establish themselves and grow and so we know the best ways to manage credit control […]