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Which is more important? Cashflow or profit

Cashflow and profit are two of the most important financial measures for any business. But while they’re both related to the financial performance of a company, they measure different things. Knowing the difference – and how cash and profit contribute to your success story – is a vital skill if you want your business to have the best possible financial health....

Our Management Reporting Service

Regularly reporting and monitoring your results leads to better decision making. The more you understand your business, the easier it is to make more money or reduce your hours. This is why you should get in touch for more info about our Management Reporting service!...

Cashflow freedom - The 7 causes of poor cashflow

Even profitable businesses can and do fail because of poor cashflow. What’s important is that you understand your key cashflow drivers. Improving cashflow is often all about changing your processes. Processes such as how you order stock and pay for it, how you bill for your services, and how you make sure you get paid by your customers....

Our Cashflow & Profit Improvement Meeting

Our 90-minute Cashflow & Profit Improvement Meeting identifies 1-2 strategies you can implement which will have a noticeable impact on your business. Small changes can have huge results!...

Tax planning helps your money go further

Tax planning is a strategic approach to managing your business’ financial affairs, with the aim of legally minimising your tax liability. In other words, you plan ahead to make sure you pay the taxes you should be paying, but not a penny more. Working with your tax adviser, you can look for deductions, credits, exemptions and tax-saving strategies that will help to optimise your company’s overall tax position....

Company year-end preparations: time to get ready

As your company year-end date gets closer, there are a number of admin and financial jobs to complete  – so it’s a good idea to get yourself organised and ready. There are several things to check, either on the year-end date, or before the end of your company’s financial year. Some tasks are simple administrative processes, while others involve a deeper dive into your accounts. But, on the whole, this is about getting on top of the work and making sure your year-end is as hassle-...

Think Business Coach

Being a business owner can be immensely rewarding. But it's also a highly pressurised and stressful position to choose. The business journey can be full of pitfalls and challenges that make it more difficult to meet your goals and turn your business into a success. The good news is that you don't have to travel this road alone. A business coach is your companion on the journey. A coach will help to shoulder some of the load, so you can get where you're going faster and with all the personal...

Changing Car Think Tax

Having the use of a company car is a great perk. But are you aware of the tax impact of a company car and how having this vehicle may affect your company benefits? Two of the key tax considerations related to company cars are the benefits in kind (BIK) tax charges incurred by the driver, and the tax deductions which benefit the company. At present, it’s also worth understanding the benefits of running an electric or low-emission vehicle....

Spreading your tax costs with Time To Pay

HM Revenue & Customs (HMRC) expects you to pay your taxes on time, and charges penalties and interest on late payments.  But if you’re finding it difficult to pay in full, HMRC can be approached to allow a Time to Pay arrangement, in most cases this will stop the penalties but interest will still be charged. A Time to Pay arrangement will allow you to pay your debt off in pre-agreed instalments, reducing the impact of a large tax bill – and helping you manage your debt and cash...

Requesting payment

Cash has always been king but it’s even more important during these times of economic slowdown. The slower the economy, the less cash is available in businesses, and the more likely it will be for some customers to be unable to pay. To protect your business and minimise the risk to your cashflow, follow these six steps to help ensure you get paid. 1. You must continue to enforce your Terms of Trade, however, your approach must change.Do not adjust your expectation to receive what you...

Sales levels are too low

It might sound obvious, but it isn’t to many businesses. If current sales levels don’t support the overheads and other cash demands on the business, then your overdraft will keep increasing. This means that your business in its current state is not viable (unless you have ongoing access to new funds from yourself, investors or financiers)....

Your Cash Lockup

There’s a massive difference between profit and cashflow. Profit increases when you create an invoice for work you’ve done or goods you’ve sold; cash increases when you bank the money. Your lockup equals the cash that isn’t in your bank account because it’s either in work in progress (you’ve done some work but you haven’t yet billed for it) or you have billed your customer but are waiting to be paid. There are two key processes that need to be improved to reduce the cash ...

Profit and Cash

The foundational goal of any business is to make a profit. As a business owner, that’s one of your key financial aims – to make enough sales, at a big enough margin, to generate profit from your work. But how does profit differ from cashflow? And why is cash king?...

Take care of yourself, not just your business

When the buck stops with you, it can be easy to let the pressure mount up and to discount your own wellbeing. But taking care of your own mental health is equally as important as taking care of the business – research from MYOB in Australia showed that 53% of business owners suffer from stress and anxiety relating to the running of their business So, what can you do to take care of your own mental health and work mindfulness into your usual routines?...

10 ways to improve business performance

Here are ten ways to make sure that you continue to drive through each business quarter with purpose, vision and the courage to super-charge your business....

Buy To Let Property Portfolio

Purchasing a buy-to-let property is an increasingly popular way to invest in your future and to give you and your dependents some financial security. But starting a property portfolio and becoming a landlord is something that requires plenty of thought before you dive in. We’ve highlighted four important areas to consider when purchasing a buy-to-let property...

Our Business Planning Service

If that is the case then it is time for action. Success is about planning; we want to help you achieve success. It’s essential to take time out from the day-to-day activities in your business to focus on your business; setting goals and establishing strategies to unlock your business potential. At the end of our business planning session, you’ll have a one page Business Plan to act as a guide map to ensure you’re on course for success....

Step 3 of Building a Better Business

This crucial step is so often overlooked. But without knowing your starting point, you don't know what your path to success looks like. It sounds obvious, but many business owners plan for the future without fully understanding where they are now....

Now, where, how

For any sort of planning, whether it’s your Strategic Plan, Business Plan, Route Plan, or Personal Development Plan, you must first know your starting point to plan your journey to where you want to go. The Now, Where, How mindset helps us recognise where we are now, then clarify where we want to be in the future, and determine how we’re going to get there....

3 Essential Tools

Business owners often feel like they're not in control of their business. The number of hours they're working starts creeping up, they start experiencing more stress, and it starts affecting their personal life. So, how do you regain that much needed control? How do we gain more financial, time and mind freedom? There are three essential tools all businesses must have: An annual Business Plan.An annual forecast.Ongoing reporting and accountability. ...

Profits or cashflow?

Making a profit is at the heart of running any successful company. But should profits be the only financial focus if you're looking to create a stable, long-term business? Cashflow is the beating heart of your business. Without an even and predictable flow of cash into the company, you can't cover your overheads, you can't pay your team and you can't run your day-to-day operations – let alone think about expanding and growing the business. So, what’s needed is a healthy cashflow position AND...

How's the forecast looking for your business?

Whenever we're going on holiday or have plans for the weekend, we always check the weather forecast so we can plan accordingly. It’s no different in business. The forecast tells us if there’s bad weather (poor cashflow) in store based on the direction we’re heading....

Understanding your working capital to maintain business success

If cashflow is the lifeblood of your business, then working capital is the health check you should regularly undertake to keep your business alive. Knowing your working capital will play an essential part in maintaining business success during these times of greater economic insecurity....

Mini Budget or fiscal disaster? What the Chancellor announced

The new Chancellor of the Exchequer, Kwasi Kwarteng, now known as Kami Kwasi, delivered his first major fiscal announcement to parliament on Friday 23 September. Billed as a mini budget in the press, what was actually introduced was ‘The Growth Plan’, a raft of sweeping cuts and changes to legislation. The new measures have already been widely criticised – by both sides of the Houses of Parliament and by economic commentators across the political spectrum. Depending on your viewpoint, this...

Economic Threats

The Bank of England is predicting that the UK will dip into recession at some point in 2022, driven by multiple factors that are causing the economy to stall and falter. It is important to understand what  these key economic threats are? And how are they likely to affect your business in the coming months?After all you don't want your business to run out of cash....