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Setting up a small business in the UK has never been more popular. According to the Federation of Small Businesses (FSB), 99.3% of all private sector businesses were accounted for by small businesses. [Source]
But running a small business is not for the faint-hearted. Business owners are generally not accountants (thank goodness!) and often struggle to get a clear picture of their financial situation. A typical issue is that they might know how much money they have in the bank, but do not know what their profit was in the last month or how those profits (or losses) will flow into cash.
Business owners have lots of balls in the air. For “small businesses the major worries are clients stalling payments, unexpected outgoings, and outstanding bills that won’t wait to be paid.” – Tom Ewer, Entrepreneur
A lack of clarity on these things creates a lot of stress and can lead to crisis situations when large payments (e.g. VAT or Corporation Tax bills) come due unexpectedly.
These survival issues are before we even start to think about how to grow those profits over time in a precise and measurable manner.
How does Business Growth Services help small businesses owners in these situations?
The first thing is to make sure that we, as accounts professionals, can see and access your accounts in real time and that we are all working on the same system. This is where the power of the cloud comes in. Our preference for this is a cloud based platform called Xero. This is simple to use for you, it allows you 24/7 access to your accounts as well as a finance dashboard that allows you to have easy visibility of your company finances. At the same time this is a fully fledged double entry accounts system which we need as accountants to do the dark arts of what we do.
Utilising the Xero accounting platform, we then prepare/help prepare monthly management accounts so that the client has a detailed understanding of the profit and cash position at their fingertips. We don’t just supply robust numbers. We also coach our clients to understand the financial drivers of their business and what options they have to drive them. We understand that not everyone has the expertise or resources needed to keep track of their financials. We love to help clients understand what’s in the black box.
Once we have solid numbers which we all understand, we can then usefully look at how to grow those profits. The organising principle of our work with you in the first year is how can we help you “Double Your Profits In 12 Months……Or Less!©”.
If any of that’s of interest, see our Managing Partner, Shaun Walsh, talk about who Business Growth Services are and what we can do for small businesses. Please watch our video: