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Top tips to maintain financial control of your business

Effective financial control of your business will not only give you more options when it comes to cash flow but create space for strategic decision making and planning for resilience and growth. It’s a vital part of the process of running your business successfully and is going to be key for ensuring that you can meet objectives, overcome obstacles and set your enterprise on the path to long-term financial stability. So, where do you start?

●      Define a clear plan of action. If you’re the driving force behind your business then you need to ensure that you have a business plan in place that integrates financial elements and a range of external and internal influences, as well as your key objectives and goals. You’ll be able to use this for essential planning and also as a metric to compare projected performance against actual numbers.

●      Effective accounting records are vital. It’s your job to keep clear, accurate and up-to-date accounting records and will benefit your business to do so. Accounting records are an essential component in decision making, which is why it’s also important to ensure that your records are always up to date and you’re working from the most recent numbers. Clear and accurate accounting will also be essential for auditors and putting together end of year statements and returns.

●      What are your basic costs? One of the most common stumbling blocks for businesses is not having the cashflow to cover basic costs. Ensuring that the resources are there for this starts with having a clear idea of what those costs are. What do you need to cover to keep the enterprise running on an operational level (think business rates, salaries etc). This knowledge is going to be especially essential if cash flow is ever tight and you need to allocate what you have to the most important areas.

●      Use the power of forecasting to your advantage. Many people dismiss forecasting because it can be challenging to do at first. However, budgeting and forecasting offer a smart way to run through a series of ‘what if’ scenarios, to plan for the worst that could happen and to create solutions for those worst case scenarios. Being able to forecast something as basic as sales and profit is going to be essential if you’re going to be able to steer your business well and maintain financial control.

●      Take advantage of the technology that is available to you. Whether it’s project management software or accounting technology there are many different systems that can help you to create a competitive advantage when it comes to financial control of your business. Don’t get overwhelmed by all the available options but instead choose the tech that is going to work best and deliver the most opportunities to get perspective on numbers and progress.

If you’re going to maintain positive financial control of your business then you need to have the right approach - these tips are a great place to start if you want to do just that. Find out more by booking onto our Sustaining Effective Financial Control training course.