Seeing a noticeable growth in your business is an exciting time, but it also means that your responsibility is growing, too. As your responsibility grows, it can start to become a challenge to manage all of your duties effectively and efficiently. At some point, you will need to enlist the help of someone else. This will most likely be an accountant to help you manage your business’ finances.
An accountant will be able to support you with the majority of your financial management needs, but there is a level of work that needs to come from you as well to keep things running smoothly.
-
Open a Business Bank Account
Having both your personal and business finances in one bank account will make it extremely and unnecessarily difficult to determine your costs. It is best to open a new bank account under your business name as soon as possible to keep your business’ cash inflow and outflow contained. This will make it much easier to calculate your finances and for your accountant to assess your records.
-
Organize Your Budgets
Your accountant will need to know what your necessary cash outflows are to determine how best to manage them. Categorize your outflows into distinct categories so that you can attribute outgoing costs to them when planning your budget with the accountant.
These categories can include:
- Employee pay
- Stock purchases
- Office rent
- Travel expenses
These categories will depend on the type of business you run and how you run it, but keeping a tab on everything you pay out for will help to determine the best plan of action for the future.
-
Track Any Changes with the Help of Professionals
During the year, you will have busier and quieter periods with clients, and you will need to adapt your business expenses to this. Look into hiring chartered accountants in London to help you with your finances. Even with the help of chartered accountants at Howlader & Co, you should monitor your finances regularly to spot if any changes occur, and you should note these changes. For example, during the periods when you have fewer clients, you will have less income, which will have to be accounted for in your finances.
-
Evaluate and Update Your Methods
As your business grows in size, your expenses will also grow and change. When this happens, you will need to amend your business plan and your financial management strategies.
To avoid any big changes disrupting the everyday running of your business, you and your accountant should periodically evaluate and update your plans and methods to keep your financial management techniques effective.
To remain efficient, your plans have to be flexible and prepared for change.
Keeping track of finances within a business is an essential but difficult responsibility that is made easier by the assistance of a professional accountant.
To make the most of your accountant’s services, you should provide them with all the information and records they need to devise an efficient and tailored financial management plan for your business.
You know your business best, but they know accounting best; together, you can curate a winning business plan.
