CREATING FINANCIAL SUCCESS
thebusiness
andgrowth
Completewithafinancial selfassessment checklisttounderstand yournextsteps
ownersguideto financialclarity
Welcome
We understand the stress and overwhelming feelings business owners often experience when handling financial concerns.Itcanbefrustratingnotknowingthesolutionsand feeling consumed by the daily operations to the point where you'reconstantlyputtingoutfires,withnotimeforstrategic thinking.
That's why we've created this guide, offering eight indispensable tips that will ensure your financial matters are orderlyandwell-maintained.
With these tools, you can shift your focus to other critical aspects of your business, alleviating the constant firefighting.
Simply go through the eight points, and prioritise them, thinking about what is going to make the biggest difference to the business. To find out what is most important, use the Checklist at the back of the guide, which will help you understandyourperformanceineacharea.
ElaineHerlihy BelugaFinanceSolutionsSpendtimeandresourcestokeep yourrecordsandaccountsuptodate. Withoutuptodateaccountsyouriskmakingkey financialdecisionsoninaccurateinformation.
Thiscouldhaveharmfulconsequencesforyour business. Utilisingrobustaccountingsoftware likeXeroorSagecansignificantlyaidin maintainingyourfinancialaccuracy.
02
Investinoptimisinganddocumenting yourfinancialprocesses.
Documented processeshelpstreamline communicationbetweendepartmentsand ensureseveryoneisonthesamepageand accountablefortheir tasksintheirworkflow. Processautomationcanpropelyourbusiness forwardinnewandexcitingways.
01
Haveaplaninplace,outliningyour short-termandlong-termfinancial objectives.
Havingtargetsinplacewillhelpfocusyour decisionsonhowyoumayachievethosetargets andthatinturnwilldriveyourbusinessforward. Itdoesn'tneedtobeoverlycomplicated,justa simplebudgettomonitorperformanceagainst. Thiswillalsoprovideatoolforyoutoholdyour departments/managersaccountableto.
UnderstandCashflow.
Mostthingsthatyouwillwanttoachievein businessrequirecash.Understandingwhere moneycomesfromandwhereitgoesiscrucial.
Acashflowforecastshouldcaptureallyour dailytransactionsbutalsothoselargerquarterly onesforexampleVATandrent.
03
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05
Haveaclearandsimplesetof accounts. Managementaccountsareinternaldocuments.If youdon'tlikeallthefinancejargonthendon't haveitonthere.Theyshouldbesimple, understandableandinaformatthatworksfor yourbusinesstogiveyoutheinformationyou needtosupportdecisions.
06
Manageyourdebtwisely Debtcanbeapowerfultoolforgrowthwhen usedproperly,butitcanalsoleadtosignificant problemsifnotmanagedwisely.Businesses shouldaimtomaintainahealthydebt-to-equity ratio. Makesureyoualsohavearobustdebt collectionprocessfromyourCustomers.
07 ManageyourRisk. Identifyandplanforpotentialrisks,suchas marketvolatility,customerloss,orsupplychain disruption.Anemergencyfundorbusiness insurancecanprovidefinancialsecurityinthe eventofunexpectedexpenses. 08 Don'tbeafraidtogetprofessional guidance. Runningabusinesstakesupalotoftimeandnot allbusinessownersareaccountants.Thingslike forecasting,process improvementsandfinancial strategycanbepushedaside,eventhoughthey arecrucialpartsofrunningabusiness. Save yourtimeandgethelpwithoptimisingyour financefunction,getfinancialclarity,andmost importantlysavemoneyinthelongrun.
SelfAssessmentChecklist
Thischecklistisdesignedtohelpyouaccesswhereyouare With1beingnotatalltrue,and10beingverytrue,rankhowyouareperformingagainsteachitem below.
Ascoreofunder30: You have significant gaps in your financial control With clear financial data, you can make informed decisions about business operations, investments, hiring, and more You can identify profitable aspects of the business and areas that need improvement Beluga Finance Solutionscanhelpyouunderstandtheinsandoutsofyourfinancialsituation,helpingyoumanage cashflow effectively and help you to discover opportunities to increase profits, reduce costs, and improveefficiency
Scorebetween31and60:Youareheadingontherighttracktogettofinancialclarity Thereare stillsomeimprovementsthatcanbemadetohelpalleviatethestressthatcomesfromuncertainty andlackofcontrol Getintouchwithustofindouthowtoimproveyourclarityandcontrol
Ascoreofover61:Congratulationsyouareonyourwaytofinancialclarity. Ensureyourleadersinthebusinessunderstandyourfinancialposition, enablingfocusongrowthandimprovements Contactustocarryonyour financialclarityjourneytoenablehigherprofitandgrowth.
Youraccountsandrecordsarekeptuptodate 1 2 3 4 5 6 7 8 9 10 Yourfinancialprocessesaredocumentedand automatedwherepossible 1 2 3 4 5 6 7 8 9 10 Youknowyourshorttermandlongterm financialobjectives 1 2 3 4 5 6 7 8 9 10 Youhaveacashflowforecastinplace 1 2 3 4 5 6 7 8 9 10 Yourmanagementaccountsare understandableandrelevantforyourbusiness 1 2 3 4 5 6 7 8 9 10 Yourdebtisatamanageablelevel 1 2 3 4 5 6 7 8 9 10 Youareawareoftheriskstoyourbusiness andhaveaplantomanagethem 1 2 3 4 5 6 7 8 9 10 Youhavefinancialclarity,andastrong financialstrategythatissharedacrossthe business 1 2 3 4 5 6 7 8 9 10 TotalScore
Asweconcludethisguidetofinancialclarity,remember thatadeeperunderstandingofyourbusinessfacilitates makinginformeddecisionsessentialforgrowth.An efficientfinancefunction,withprecisemanagement accountsandacrystal-clearbusinessstrategy,is instrumentalinattainingthisunderstanding.Keeprefining yourfinancialacuity,asitisthebeaconthatguidesyour businesstosuccess.
Ifyouhaveanyquestionsorwouldliketodiscussyour businessandworktowardsfinancialclaritythenplease don'thesitatetogetincontact.
CallElaineon01329729059oremail elaine@belugafinance.co.uk
belugafinancesolutions.co.uk
