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Haines Watts Slough Phone icon 01753 530333

As a business owner, you can fall into the trap of spending time on the urgent, day to day issues at the expense of prioritising the important or more longer term problems.

Making sure that you have your finger on the pulse of your company’s financial health is vital.

Jonathan Moughton, Partner at Haines Watts Slough, highlights four areas that warrant particular attention:

 

1.   Working capital cycle

Proper management of working capital is fundamental to your financial success. It is a key indicator of how efficiently your company is operating and how financially stable your business is in the short term.

Good working capital management helps you track whether you have sufficient cash flow to cover short term debts and expenses – and also indicates how well-run your business is.

Evidence of good practice in this area is particularly key when going for an additional round of funding or reporting to your bank.

 

2.   Cash flow forecasting

Being able to predict, with some accuracy, the cash your business will require is essential, particularly in these uncertain times.

Accurate forecasting should enable you to plan to use any cash surpluses wisely and also alert you to potential risks on the horizon.

 

3.   Interpreting financial ratios

Ratios provide a valuable tool for evaluating progress against internal goals. They also provide a measure to compare the performance of your business against competitors.

Financial ratios can be a powerful tool for identifying trends and safeguarding your business against market dynamics.

 

4.   Planning financial growth

A financial growth plan is not a business plan though it can be just as important. It is a plan that works hand-in-hand with your business strategy, providing insight into how you expect your business to perform and where the financial risks may lie.

It documents the levels of funding you have access to and outlines plans for access to future funding.

 

While there is no doubt that having a sound understanding of and grip on the financials is essential, there comes a time when you may need an expert to take on responsibility for the finance function.

Talk to one of our accountants in Slough about your finances.

Want to know more? Call us on 01753 530333 or email slough@hwca.com

About the author

Jonathan Moughton

Jonathan runs the Audit & Business Services Department across our London and Slough offices. He is also a member of the National Audit & Quality Control Committee of the Haines Watts Group.

Since becoming a Partner in 1998 he has acted for a wide variety of owner-managed businesses and not-for-profit organisations, as well as having a range of internal responsibilities.

Highly experienced, with a focus on providing high quality advice to privately owned businesses, he has served clients across diverse business sectors in the region for over 15 years.

 

Working directly with business owners, with their ability to make quick decisions, I get to see clients acting on our advice and the subsequent outcomes in practice. I also enjoy the variety of clients I work with and the challenge of meeting their diverse requirements.

If I wasn't doing this I'd be: an engineer.

Favourite Sports Team: Wasps.

Dream Location: Umbria.

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