Having been bogged down with tax return compliance work, our business now rises and changes like a chameleon into business planning and advisory mode. Lots of clients have March year ends (to almost coincide with their own fiscal year end of 5 April); so we’ll be helping them make those pre year end decisions that can be so crucial as they look to start off another year in business.
The start of the year is a good time to review how your business is doing so let’s have a look at some critical areas:-
- If you are coming up to your year end, book a meeting with your Accountant. He can help you save tax and advise on a whole range of financial matters. I get asked to give advice on many aspects of business life. If I don’t have the answers, we’ll invariably know someone that can help. Your Accountant should be a key member of your team.
- Review your cash flow control. Cash flow is the balance of all money flowing in and out of your business, with the main inflow usually coming from sales. The more warning there is of cash flow peaks and troughs, the more time you have to deal with them. You must know when to focus completely on sales and when to concentrate on getting paid. Planning ahead will make it easier to arrange any additional funding you may need.
- Make sure your employees are performing effectively and are overcoming any problems. Are the right people on board? Lead and motivate your employees. Monitor your team’s performance by holding regular reviews. Discuss and resolve any problems and frustrations your team may have.
- Does your business have appropriate sales skills? Make sure that you, and all employees who interact with customers, have the right training, attitude and approach.
- Review costs carefully. All direct debits, standing orders and regular costs should be analysed. Are you getting value for money in key expenditure areas? This is often the easiest way to improve your short-term profitability.
- Continually improve your understanding of the competitive environment that you operate in to refine your marketing plans and take advantage of new opportunities. Review your strategy for winning and keeping customers. Above all make sure you keep what you have!
