Finance

From tips on handling cashflow to obtaining government grants and setting up a credit control system; our finance section contains everything you need to know about raising investment and managing your small business money.

International Money Transfers: How to Feel Safe and Secure

International Money Transfers: How to Feel Safe and Secure

Businesses are no longer confined to the restraints of operating within domestic markets and are now more global than ever before. Whether individuals are seeking a better work/life balance or want to take advantage of development opportunities abroad, many organisations are now working on an international scale. But with these newfound opportunities and practices comes a new way of working, including the need to send money abroad. It’s widely reported that the banks aren’t the best option when you want to transfer money abroad – slow business practices and high fees are just two common complaints.  Aside from transferring money, you’ll also need to consider setting up a bank account and whether you require debit or credit cards for costs such as expenses. With so much to take into account... »

Small Business Investment Options: A Legal Perspective

Small Business Investment Options: A Legal Perspective

Many businesses need investment to be able to develop their product, launch it to market or expand into new markets. The common route is to get an equity share or bank loan – but whilst these are readily available options, they are not without pitfalls and obstacles. As a leading entrepreneur law firm we have worked with many companies, investors and financial groups looking for investment. This has given us a unique perspective on the risks and benefits of the different options available (from a legal and operational perspective). Our view is that before entering into any form of investment negotiation businesses must be armed with all the facts and options and, at the same time, fully understand their own needs. So what the top options available to you? Below we have outlined six o... »

What Is a Profit and Loss Account?

What Is a Profit and Loss Account?

A profit and loss account details your business transactions, subtracting the total outgoings from the total income to tell you how much, if any, profit you have made. Your profit and loss sheet, unlike a balance sheet, displays the financial health of your company for a period of time – a month, a quarter or a year. A balance sheet only represents your finances at a particular moment in time. If your company is incorporated, you are required by law to produce a profit and loss sheet for each financial year. If your business is not trading as a limited company you don’t have to produce one, but producing a profit and loss statement is nevertheless useful to determine how your business is performing at a glance. What goes into your P&L account? 1. Gross income (the total of all money th... »

Debt Management: What Are Your Options?

Debt Management: What Are Your Options?

For many businesses, dealing with late or non-paying customers is just part of the course. However, when businesses are finding their feet, or growing quickly, the time and effort required to chase payments can be extremely frustrating and costly. What are the warning signs? To tackle the problem of bad debt, businesses need to stay alert and spot signs that a customer contract could be becoming a problem. If a key customer normally pays its invoices on time after 60 or 90 days but payments have recently started to slip – this could be a sign that they are experiencing cash-flow difficulties. Another indicator could be if the customer requests a breakdown of the invoice or a purchase order number. While such requests may of course be entirely justified they could also be symptomatic of fin... »

Solving Your Cashflow Problems and Keeping Your Business Out of Trouble

Solving Your Cashflow Problems and Keeping Your Business Out of Trouble

Most companies at one time or another will experience a bump along the financial road – those that deal with it best are those that tend to look beyond just next month’s salaries and actively manage future cash requirements by having a good understanding of how the next few month’s trading will impact cashflow. The best and most obvious way of doing this, is by producing cashflow forecasts and regularly updating them. Not too many directors/owner managers are qualified in the art of producing such information, but everyone in business should have some basic understanding of the monthly costs being incurred. How to produce a cashflow forecast With this basic information and knowing roughly what the likely sales will be over the next three months, it is extremely simple to put together a bas... »

How to Manage Tax Efficiently: 5 Simple Steps

How to Manage Tax Efficiently: 5 Simple Steps

Small businesses face many challenges; however, finance can be one of the hardest to get to grips with. It can be a major distraction from the day-to-day ‘doing’, and many businesses simply don’t have time to keep abreast of ever-changing tax rules and regulations. This often results in a lack of confidence in how to manage the business in the most tax efficient way. However, a sound financial footing is the bedrock for any successful business which is why it’s crucial to have a firm understanding on matters including taxation, storage of accurate business records and regulatory compliance – right from the start. Communication with HMRC Although dealing with the tax man may seem daunting, it is crucial that you remain in contact with HMRC, and especially HMRC advice when it comes to paying... »

How to Deal with Late Payments As a Small Business

How to Deal with Late Payments As a Small Business

It’s a fact that can be a little hard to swallow at times, but there will come a point within your time of owning a business where payments will be late. It starts as business as normal; the brief was set, the work was completed, the invoice was sent – then……nothing. The time has come when you need to chase the payment, but let’s be honest, it’s not the most desirable part of the job – especially for us painted smile and gritted teeth super polite British folk. A survey conducted last year suggests that the average small to medium businesses in the UK are owed £40,857 in unpaid invoices, with more than 50% of the total being overdue. 1,000 businesses were surveyed, and 23% of them said that these late payments have put them at risk of closing. Chasing a late payment can be one of the most ... »

How Alternative Finance Could Accelerate Your Business Growth

How Alternative Finance Could Accelerate Your Business Growth

So you’ve survived the early stage of your business and you’ve decided that it’s time to take the next step. There are many avenues you can invest your time and money in, and alternative finance can be an ideal way to fund projects aimed at expanding your business. Alternative finance is the internet’s answer to traditional bank loans and options can include peer to peer (P2P) lending, crowdfunding and unsecured business loans – you can even get business loans with bad credit much more readily than in the past. Here are five ways you can utilise alternative finance to take your business to the next level: Upgrade your online presence Sixty-four percent of all in-store sales were influenced by the internet in 2015, making it more important than ever to elevate your online visibility. From y... »

5 Ways You Can Exit Your Small Business

5 Ways You Can Exit Your Small Business

For many entrepreneurs and business owners, deciding to exit your business is one of the most critical decisions you could make in your professional career. After tirelessly dedicating years to ensuring the growth of your company, winning new clients and hiring new staff, you’ve finally decided now is the time for you to leave your legacy in someone else’s hands. Once you have made this significant decision, you then need to think of the best exit strategy for your circumstances. Whether this be handing the business over to a family member or a straightforward sale to a third party, navigating the labyrinth of exit strategies is a decision that requires careful consideration. So what are the key options? Handing over to a family member Transferring ownership of your company to a relative a... »

5 Ways Your Business Will Never Run Out of Cash

5 Ways Your Business Will Never Run Out of Cash

Access to finance is an ongoing challenge for many small businesses. Traditional routes for raising capital are often less flexible and some finance options, such as overdraft facilities, are dwindling in their availability. To ensure their own survival and growth, small businesses need to put in place processes that manage their cashflows better than ever before. Credit control – seeing red Outstanding customer invoices, if allowed to accumulate, can ruin a small company that relies on regular income to cover operating costs. A robust credit management system that monitors overdue payments and follows proper processes to recover the debt, can mitigate this risk and is simple to implement. Outbound credit communications, for example a standard monthly statement and letter, can help y... »

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