Avoid fireworks within your business

Oct 31, 2013

Croombs Chartered Accountants in Hampshire

As a business owner it is vital that you avoid fireworks within your business at all times.  Whether this is between staff, your Accountant, your customers and suppliers or even HM Revenue & Customs.

This month I thought it would be useful to consider areas you could tighten up on within your business to avoid potentially damaging issues to your business and it’s reputation.

  • Involve your staff within your business, consult them and encourage the exchange of ideas.  This will certainly improve morale within your business but also it should improve the company’s financial position as everyone is pulling in the same direction. They may also have some really good ideas!
  • Review your finances regularly.  Many businesses get so caught up with actually performing the work that they miss a very important issue, THE FINANCES!  If you haven’t already done so make sure your business has the appropriate accounts system in place so that you can always see how you are performing.  The vital areas should be:
  • Profitability
  • Do you have enough cash to fulfil your existing and future orders?
  • Can you pay your suppliers on time?
  • What are your future financial figures going to look like?
  • Make sure your customers are happy. Customer service is key and they must feel like they are your priority. If they don’t then this can cause problems down the line. Happy customers are more likely to pay you on time, which means you can pay your suppliers on time.
  • Make sure you pay your suppliers on time.  This will then stand you in good stead if you need to call on their assistance in the future. Whether it is to request they process an urgent order for you quickly, or you require additional time to pay them because a customer is late paying you.
  • A similar approach should be adopted with HM Revenue and Customs.  Make sure they are paid on time as this will give them confidence that you are running a tight ship which could reduce the risk element they attach to your business, which may reduce the likelihood of a tax investigation in the future.  Any correspondence you receive from them should be dealt with promptly as again this helps should you ever need to ask them for assistance in the future.

If you have any questions regarding anything above and would like some more information please contact us.  All initial meetings are free of charge and of course at no obligation to you.

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