If you're looking to grow your business, how can you be sure to remain financially fit?
Being an entrepreneur or managing a business is no easy task! Keeping on top of finances often comes with its own challenges; you will constantly be juggling various responsibilities including cash-flow and keeping on top of a budget, whilst also managing meetings and administrative duties.
Here at Okappy we have been working with some of the best businesses across the world to deliver a simple and easy job management system to allow our clients to focus on thinking bigger about their business as a whole. Read on for some insight from our experience working with our clients and our tips to help you boost your financial fitness to the next level.
Pre-Plan for Unexpected Hurdles
It is crucial to forecast with caution when planning your expenditure. Ambition is needed in order to lead a successful business, however it is vital to be as conservative as possible when forecasting your costs. It’s important to factor in for unexpected expenses and allow room for variance. You can improve your cost predictions by using online job management software like Okappy, which allows you to update changes to jobs in real-time allowing you to continuously update every detail as your circumstances change. Data can be gathered from real-time technologies to provide you with a more informed forecast rather than pie-in-the-sky estimations.
Make Smart Funding Decisions
Fundraising can be a time-consuming and tiresome ordeal. It is essential to source affordable and flexible funding in order to stay on top of your business without sacrificing success. Hiring a good accountant is key. Your accountant should be advising you to use various resources and providing useful content to help you make the best decisions for your business. A good accountant will help you navigate the various funding options available whilst providing you with the necessary preparations. The result is a financial deal where you don’t have to deal with the finer details yourself.
Don’t Get Stuck in the Mud
It’s easy to get swamped with tasks that your employees should be working on. However, this can slow you down and when this happens, you are not fulfilling your role as a leader. Being too busy to grow your business is a dangerous position to be in. If you find yourself bogged down with menial admin or responsibilities that could be done by someone else, it might be time to reconsider the way you allocate your roles. Delegating certain tasks and handing over dad-to-day financial admin, such as bookkeeping, to your accountant may help you focus on the areas of the business that really need your attention in order to grow.
Find Flexible Accountants
It’s is important to make sure your accountant is willing to stretch their usual way of working to fit how your business operates. The demands of an SME often change as they expand. If an accountant is not willing to adapt their service to fit the needs of the company, then it will be a burden on the business. It might be worth hiring an accountant with industry experience specific to your sector so that they are well prepared and knowledgeable to the specific demands and challenges you face. You need a range of options and packages that can grow with the business.
Accessing financial records is also vital to a healthy financial department. If your management and digital accounting software is as effective as Okappy and Xero, you will have all the facts and figures at your fingertips, allowing you to always have an accurate picture of the business.
Keep Up With the Pace of Your Cash Flow
As an entrepreneur or business leader, you will know all too well how quickly cash can flow in and out of your business. Keeping a track of it all is a challenge in itself but budgeting in your cloud accounting software will keep you aware of your current position and give you an idea of where you will be in the future. It is important that you build your cash reserves whilst the market is stable in preparation for the unsteady times ahead. Focusing on your cash-flow helps you to accurately choose opportunities that will best benefit the business.
For more useful insights on improving your financial fitness check out Gerry’s other article; ‘Top 5 Tips for Getting Your Invoices Paid On Time.’ Or visit the Okappy blog.
Author: I believe business can be a force for good, but all too often work ends up being painful as companies are overloaded with admin, paperwork and masses of emails. My mission is to improve the working lives of construction companies, giving them complete control of every job every step of the way and have some fun!