This last year has been a tough time for many of our clients, but with ‘Human First’ as one of our core values, we’ve focussed on ensuring that we’ve done everything we can to make life that little bit easier for them. Whether that’s keeping them up-to-date and ensuring they have the right financial information, helping them with their cashflow, keeping a positive outlook, or just being there to listen and for a chat, we hope we’ve helped them in some way throughout 2020.
As we all move forward into the new normal and leave 2020 behind, it’s important that this support continues and that businesses plan for growth.
We’re currently focussing on helping you to shape your business plans, get to grips with where your finances currently stand and determine what they may look like over the coming months, and we have some tips to help you through it.
Revisit your aspirations
Take the time to step back and review your personal aspirations and business goals. The crisis may mean that you have a very different view on the balance with family life than you had before.
Whatever sector you operate in it’s unlikely that your business looks the same way than it did before. Determine how you want it to look and what you want to achieve. This will form the foundations of your new business plan.
Stay on top
Reconcile your books daily. If you don’t understand where you are today, you can’t move forward tomorrow. Get into the habit of reviewing regularly. Automate your processes to make this easier. Whether you’re on a cloud accounting platform like Xero, or spreadsheet based, there are lots of tools available for capturing invoices, tracking expenses and cash flow forecasting which can make things quicker and accurate.
Let the Cash Flow
If the fear of uncertainty stops you looking at cashflow start with a really simple cash monitor. What money do you expect to get in each month and what do you really have to pay. Once you have this you can build on it, adapt it for different possibilities and create ‘what if’ scenarios.
Fear comes from the unknown. As a way forward starts to become clearer, use your cashflow to build a plan, make decisions and move on. Being prepared will give you confidence, reduce the risk and give you direction to build your business.
(If you’d like a free simple excel cashflow template, then feel free to get in touch with us and we will send one over to you).
Take a step back
Take a step back to understand your numbers. What are they telling you about your business? Which areas are profitable and which are not. If you don’t understand them, ask your accountant to talk you through.
We hope you find at lease one of these tips useful … if you do, and it makes a difference, we’d love to know.