With the start of spring and the clocks going forward it is apparent that a change of season is taking place. Spring naturally brings with it an opportunity to take a fresh look at different aspects of your life. Given that the current focus is on economic instability and the ‘credit crunch’, finances are naturally in everyone’s thoughts. For anyone running a business it is a good time to spring clean or detox your business finances.
If your business is out of shape unkempt and lacking financial muscle – then a financial detox is in order. There is no time like the present to review the financial standing of your business. A good place to start is by detoxifying expenses and taking control of your finances. This can dramatically improve the financial health, wealth and fitness of your business.
Over spending, indulgence and bad debts can lead to your business being ‘overweight with debt’. If your business is out of shape then it is definitely time to talk to your accountant. Why not let Yorkshire Accountancy become your financial coach and help to get your business back into shape? Working with us will ensure that your finances are fitter and healthier than they have ever been. Getting your business into shape will add considerable leverage to the business and ensure that you have enough financial muscle to see your business through the economic downturn.
The first step is to reduce costs. When was the last time you reviewed your outgoing costs? Can mobile phone bills be reduced, can your supply chain be renegotiated, can cheaper insurances be found? Now is definitely the time to break the complacency habit of remaining supplier because of the comfort factor. Break old habits and shop around – see what is new on the market.
Compile a list of fixed expenditures and identify areas that can be detoxed. This can be as simple as reducing travelling cost to and from meetings. There are many aspects that can either be outsourced or carried out by using §1. Keeping your business financially fit will require the use of an accountancy practice that gives you a little bit extra. Seek advice and tips from your accountant – there is no need to go it alone.
Working with an accountant that acts as your financial coach will definitely improve your chances of success. Once you have given your finances a good cleansing set a budget and a long term plan and stick to it. Regular communication with your accountant is the only way to retain healthy finances.
A financial detox can be hard work and you may not see any visible benefits for the first financial quarter. However continued work with a financial coach will ensure that your business reaps rewards for the remainder of the financial year.