Hello again and a very Happy New Year to all of you from us here at DCA Accountants. The foggy haze of a holiday season well spent may not have fully lifted just yet and this month may see all of our wallets a little lighter. To combat this, we have compiled a list of some handy tips to increase cash flow for you and your business and start 2016 off on the right foot.
Budget Budget Budget
No, we don’t mean another governmental offering, lay down the pitchforks, rather a budget for both your business and your own income. It may seem basic to suggest setting out a budget for your business as there has probably been a general one in place for years. However, when entering a new year we would advise setting out an immediate new budget to ensure that you have a clear idea for your finances and where you want them and your business in general to be for the year ahead. On a more personal level, it is advisable to map out exactly what your monthly income is and make a note of the absolutely essential outgoings. From there you will be able to add on the less crucial expenditures and have an idea of how much it will be possible to save each month.
The easiest way to keep track of both personal and business finances is to ensure that bills are paid as soon as possible, rather than waiting until the last minute deadline. This will prevent you from overspending as the cash will already have been spent, rather than existing in a limbo of “to be spent” where the temptation to dip in can be strong. In business, you should always set clear and attainable payment terms with all suppliers to avoid confusion.
Yoga might have played a part in your New Year’s resolutions so keep up the good work, but here we do not mean flexible in the physical sense. In both personal and business finances there will always be unforeseen expenses that creep up and threaten to derail your budgeting. The key when these issues arise is to be flexible and accept that this expense must be paid, but it doesn’t need to be the end of your savings. As much as it is tempting to derail a healthy eating plan after a day of indulgence, it is incredibly easy to allow your finances to become confused after unexpected expenses. Instead of allowing this to happen, a clear budget should allow you to figure out a way to get your savings and finances back on track.
Keep in Touch
In business, it is advisable to keep regular contact with your accountant and bank so that you are at all times aware and knowledgeable about the cash flow of your business. This contact will also assist you in identifying areas of concern early on to help avoid any issues.
We hope that these simple tips will assist you going into the New Year and that 2016 will be a successful year for you and your business. As always, should you have any concerns or queries please contact us at DCA