Some advice on improving your business finances
If you feel that your business finances are in need of a serious shakeup, there are certain things you can do to help them without applying for high interest business loan products.
Get an accountant
One of the first things that you should consider is getting an accountant to support your business. Even if you are very good at maths and you have someone in the family who has been overlooking your accounts, hiring a professional accountant will allow you to keep proper financial records and get paid on time from clients. They will also know about tax and be able to ensure that you are keeping to the law in terms of paying your tax and VAT.
Reduce your overheads
Many businesses have overheads that are unnecessary and could be cut down on. You do not necessarily need to make drastic changes. However, looking closely into any area of your business that uses up excess funds is crucial. For example, if your business pays for the Company lunch every month, you may consider asking members to pay their own lunch rather than the company forking out. This small change can make a big difference in the long run, and when looking at an annual business plan.
Look at past mistakes
You may have made mistakes in the past when it comes to your finances. This is only natural and many businesses make mistakes. However, the key is to look at these and learn from them. Make sure that you do not make the same mistake twice.
Get outstanding invoices paid
Many businesses fail to chase clients to pay their invoices on time. You really should knuckle down on any outstanding invoices that you need paid, because these are all contributing to your poor financial situation. Issue a letter to anybody who has owed you money for more than your invoice period date (that is stated on your invoice,) explaining that you expect funds to be in your account within the next 21 days or you may take legal action. You may also want to call the company and speak to them directly. If you persist, they are likely to pay your invoice eventually. Some companies may have a reason for not being able to pay the invoice. You should also listen to these reasons and come up with a financial plan if they are unable to pay the lump sum in full straightaway.
Think about responsible business finance
Buying business loan products does not necessarily need to mean large interest rates. Many responsible lenders can invest money in a business with attractive and competitive rates. Some can be paid back using working capital, which puts your business more in control. Consider business finance if you would like to invest in marketing, sales, staff or another key area of your business.