As we snuggle down into the 50 billionth week of lockdown (no just me?), your small business is either beginning to wake up again or maybe you have been trying out various ways to engage and/or retain customers. No matter where your business is right now you will have spent time over the last 9 weeks looking at your finances, where your money goes and where it comes from. I’m sure many of us have had to reduce spending along the way and increase revenue streams in order to stay financially viable.
What exactly is Financial Planning? :
Quite simply it’s planning your finances. Financial planning refers to the processes that small businesses put in place to determine how best to use the financial resources available to them going forward. The idea is to plan how to achieve those short and long-term goals, as well as to secure financial stability. this process involves considering what might occur over future weeks, months and years. This includes both internal (within a business or in a contractor’s financial life) and external (the affairs of competitors and other industry developments) variables.
- Long term prospects
- Improves cash flow
- Highlights spending priorities
- Method of measuring progress
You can do most things yourself in small business if you have the time and dedication but if you are struggling with your financial planning look into finding a reputable accountant that can offer specialist accountancy services which can save you time and money, freeing you up to concentrate fully on the aspects of your work that you enjoy and do best. Financial experts use their expertise to efficiently and effectively relate your small business goals and objectives to your chosen way of working, and the finances available. Providing practical and easy-to-understand advice.
How often do you spend planning your finances and forecasting for the future?