Financial Order for Your New Business

Do you know your P&L from your balance sheet? If not, we’ll get your startup up to speed on all the basics of company accounting.

#NurtureYourKnowledge #DidYouKnow #Accounting #BusinessAdvice #Startup

Understanding bookkeeping, accounting, and financial practices is crucial for business owners. The better you understand the numbers, the more control you'll have over your business and your decision-making.

Here's a brief overview:

Revenue: Income generated from sales, which gives you an idea of how much money your business is making. Revenue can come from various sources called "revenue streams" like product sales, services, intellectual property, or asset income.

Expenditure: Payments for goods and services, so it's important to control costs and avoid unnecessary spending. Expenses include supplier bills, payroll, operational overheads, and materials.

Profit and Loss (P&L): A key financial report summarising revenues and expenditures for a specific period, showing the profits and losses of the business. Generating profit is vital for financial viability and growth.

Cashflow Statements: Essential for managing everyday expenses. Cash inflows (revenues) should exceed cash outflows (payments to suppliers, overheads) to maintain positive cash flow, which is crucial for every startup's financial health.

Balance Sheet: A snapshot of your assets and liabilities on a given date.

---

Running a successful business requires efficient management of your finances. The better you understand the numbers, the more control you'll have over your business and your decision-making. Here are some essential tips to keep your new business's finances in order:

1. Separate Personal and Business Finances

2. Implement a Bookkeeping System

3. Monitor Cash Flow

4. Budget Wisely

5. Control Costs

6. Track and Manage Debt

7. Plan for Taxes

8. Regularly Review Financial Reports

9. Seek Professional Advice

By following these tips, you can establish a solid foundation for your business's financial success. Regularly assess and adapt your financial practices to maintain control and achieve your business goals.

For more financial tips, come and have a chat with us