Financial planning has never been more important. Ultimately, it will determine how you will afford to meet your strategic goals and objectives.Here’s some tips to help you ensure your business’ finances run smoothly:
- Make friends with the people who can help you. Your financial adviser and accountant are your closet allies when it comes to managing and planning your finances, so buddy up to get the most out of every pound you spend.
- Make sure you are getting the best deal from your bank. It is not as difficult as many would imagine to switch. Do not be put off by red tape as there are agreements to be made if you can shoulder the burden.
- Are you paying heavy interest on business bank loans? If you have a large pension pot, why not borrow from that instead and pay the interest to your pension fund. It could foot the bill for meeting short term business objectives.
- Would it be cheaper to buy the property you are renting? If the combined pensions of the directors would cover the cost, you could rent it from your pension funds. (See our article on buying business premises)
- Offer difficult customers incentives to pay their debts quickly – it will free up your cashflow and help you invest in the business. It could also keep you going when times are tough.
- 6. Review your shareholder/partnership protection policies and cross option agreements to ensure they still fit. If not, the death of a shareholder/partner may destroy the company.
- 7. If you employ even one person, it is important that you learn about your new responsibilities under auto-enrolment. The legislation started in October 2012 and will catch every employer out unless they have made provisions to get prepared. Make sure you have clarified the timings you will need to start enrolling staff and make sure planning starts around 12 to 18 months prior to your staging date.
- 8. If you are looking to buy life cover, but have a medical condition that makes it very expensive, a group scheme could help you due to the reduced medical underwriting requirements.
- 9. Do you have any employees that are difficult to replace? If so, look into relevant insurance cover to see you through if they died or developed a critical illness.
- 10. Check that your business insurance policies are as inclusive and as competitive as you think they are – it is important to get the most coverage for the least money. Experienced professionals will help you do just that.
Carpenter Rees is a 16-strong IFA business that works with a range of individual and corporate clients, advising them on their financial planning needs. For more information, carpenter-rees.co.uk