KPMG Small Business Accounting has drafted a list of five pieces of advice for all SME owners who want to keep their company’s financial fitness on top form.
it’s hard work being an entrepreneur if you’re not budgeting and ensuring there’s enough cash flow, you’re probably at meetings or developing your business.
Time and time again, small business owners find that juggling their finances eats up too much of their time when they would rather focus on the creative side.
To help, KPMG Small Business Accounting has assembled a five-point financial fitness guide for small businesses.
1. Forecast with caution
Forecast your income and expenses as you go with cloud accounting software.
I would say it’s crucial to be as conservative as possible when forecasting. it’s amazing how ambitious we can all be when setting targets for ourselves, but you’ve got to factor in the unexpected and allow yourself a lot of room for variance, said Kevin House, owner at Butikku.
2. Seek smart funding
Finding affordable and flexible funding is crucial, and it’s imperative that you find the right kind of finance for your specific uses.
Letitia Booty is a special projects journalist for Business Advice. She has a BA in English Literature from the University of East Anglia, and since graduating she has written for a variety of trade titles. Most recently, she was a reporter at SME magazine.