In your business, numbers are everything – even if you run a creative design studio in London, or a central London hairdresser’s salon. Numbers and figures determine success even when you are not directly involved in finance on a daily basis. Sales figures, profits, expenses, tax, and overheads need to be monitored and maintained in order to help increase the financial success of the business. Unfortunately too many small businesses neglect the numbers and become too caught up in cutting hair, or making cakes; the day-to-day running of the business takes over. Of course it is essential to offer a great service and make good products but you also need to step back sometimes and work out how to handle your numbers in the best possible way.
- Keep Excellent Records
Keep copies of every business transaction, keep every business receipt, and keep all your invoices. Make sure that every detail, no matter how small, is recorded and the proof safely stored away in case you need to make an expenses claim, or for when you are working out your profits. Make sure the records are organised so you can access information without having to rummage through piles of disordered paper.
- Meet Legal Requirements
When running a small business there are legal issues to consider surrounding how you can claim for expenses, the tax you need to pay, and issues surrounding insurance. If you have a business with a more complicated structure then advice from central London accountants is essential to make sure you are running your business within the law. Professional central London accountants help you to spot any potential problems and advise you on how to set up your company and how to organise your accounts.
- Meet Deadlines
Tax has a deadline. You need to be aware of the deadline for submitting a self-assessment tax return, and also the deadline for paying taxes, national insurance, and any penalties. Paying bills on time that are associated with the company is essential. You need to be organised when you run your own business. If you lack this skill, call on assistance from professional accountants or financial advisers.
- Know Your Figures
It is important to be able to see where your business is going, financially, and to be able to plan for the future and any times when you may potentially run into sales problems. Accurate forecasts, updated regularly, are essential tools for running a successful business. When you lose sight of the money, you risk running into unexpected trouble.
- Be Innovative
Even when you are thinking about hard figures and numbers, there is still space to think innovatively about possibilities and potential. Thinking about alternative forms of investment, ideas for expansion, and ways to save money on a tax bill all contribute to a healthier small business in London. Seek professional advice so you make sure you cover all avenues.