≡ Menu

Small Business Finances

During the natural lifecycle of your business, the financial health of your company may fluctuate to reflect seasons of high trade and low trade, industry trends and consumer demand. Your business may also encounter financial challenges due to changing tax legislation, such as IR35 reform. Trading uncertainty is also a major factor that has the power to decimate income streams, as demonstrated by the coronavirus pandemic.

[continue reading…]

Most small companies go bust before they reach the two-year mark (no matter how good their business idea is). Costs are almost always the cause of this demise and the reason for this is that it’s incredibly difficult for businesses to manage their finances at the startup stage.

[continue reading…]

Small and medium-sized businesses, popularly known as SMEs, are the backbone of any economy. Their owners have mastered the art of creating and selling for a quick profit.  However, one of the biggest challenges that small business owners face in their daily operations is money management. Unlike big enterprises that have employed financial professionals and accountants, small business operation is usually a ‘one-man show’.  As a result, the owner may become too engrossed with creating and selling without taking time to look at the cash flow within the business.

[continue reading…]

If your business isn’t doing everything it can to stay as competitive as possible, someone else will come in to fill the gap. Managing a business is about delegating responsibility, but it’s also about paying attention to the details. And following a few sensible strategies can give your business the edge it needs to minimise the bottom line.

[continue reading…]

Cash is not always one of the key strengths of a startup business. Startups key strength is usually the idea, motivation, energy and determination to make it happen. One of the golden rules of a successful business is “increase the cash inflows and decrease the cash outflows”.

[continue reading…]

If you’re a shareholder in a business it’s crucial to consider what would happen to both yourself and the company if you died or left the business through a serious illness.

[continue reading…]

Many business owners, including contractors, may have found it difficult to secure a competitive mortgage in the past. However, more enlightened lenders and mortgage brokers are happy to provide a mortgage for limited company directors, who may find it hard to prove income on a ‘traditional’ basis.

[continue reading…]

As a small business owner, there will be a number of business insurances that you will consider getting, from professional indemnity insurance to private healthcare insurance. Another type of business insurance you might consider getting is Keyman insurance, also known as Key person insurance.

[continue reading…]

Pensions remain one of the last remaining significant tax breaks available to contractors, freelancers and business owners. And with the sweeping changes to the flexibility surrounding how you access your pension, there has never been a better time to invest. There are a variety of pensions for directors of limited company and contractors available.
[continue reading…]

When starting his first business, a friend told me how he decided to use his personal bank account for all of his business transactions. This included the income he generated from his clients, along with all business expenses.

[continue reading…]

There are several crucial aspects and documents for a business to operate smoothly and remain solvent. One of the essential files for your enterprise is an invoice.

[continue reading…]
How to choose a limited company bank account post image

When you have formed a limited company, one of your first tasks will be to choose the best bank account for your new business.

[continue reading…]

Over the past decade office desks have changed massively, no longer do we see the dominance of calculators, notepads, writing equipment and instruments we used to update company accounts – our desks are now clutter-free and the computer has taken over. All of our trusted aids and devices can now be accessed through our PC, tablet or even our mobile phones. Most businesses have welcomed these changes, as with them they have brought dramatic increases in efficiencies and improvements in the way we work. Yet, one out-of-date accounting tool that many companies still hang on to is the “trusted” spreadsheet.

[continue reading…]

Doing business on an international scale has almost become the new norm. Today, it’s not only long-standing conglomerates that travel abroad to make business deals or sell products to other countries. Thanks to the internet, even the smallest businesses are obtaining international clients. Stay on top of this shift by learning a little about business etiquette around the world.

[continue reading…]

With the evolution of financial technology, international money transfers are now easier, faster, and more secure. One thing that hasn’t changed, however, is that these international transfers still come at a steep price.

[continue reading…]

Money fuels the business world, so regardless of whether you personally view it as a worthwhile goal or merely a necessary evil, you need to keep it at the forefront of your thoughts. Consider that entrepreneurs who just expect their finances to work out aren’t entrepreneurs for very long. You might not be able to control exactly how many clients you win or how much money you make, but you can ensure that all your sums add up and you know precisely where you stand.

[continue reading…]

A shareholder has the right to receive dividends. When the company has retained profit available, they may declare a dividend. A dividend is a share of profit paid out of the company which is proportionate to the number of shares held.

[continue reading…]

While having fun may not be a mandatory prerequisite for succeeding in the business world, if you have fun performing vital tasks, you stand to receive a number of benefits. First of all, you’re bound to pay more attention to what you’re doing (instead of just dozing off in boredom), thus reducing the likelihood of a mistake being made. Second, you’re less likely to procrastinate and postpone handling this task, which means that you’re more likely to handle your tasks in time and regularly update them. Finally, if you like what you’re doing, you’ll learn a lot quicker, seeing as how you’ll already have a strong intrinsic motivation for such a thing.

[continue reading…]

Having good cash flow is fundamentally essential for any business wanting to run smoothly and successfully. A recent UK study found that, on average, SMEs spend more than £1m a year on business-related expenditure such as staffing costs, rent, office equipment and supplies. This highlights how vital it is for SMEs to have a solid grasp of their incomings and outgoings so they can plan ahead and meet these costs.

[continue reading…]

There is no doubt that accounting software can come with great benefits for your small business. From helping you keep up with the tax deadlines to making it easier to keep records of your business finances, accounting software can be a great help. But how do you choose the right one?

[continue reading…]