FOOD FOR THOUGHT

Every governance model relies on its board members fulfilling certain skill sets or roles missing from a business. Such a diverse mix of people who can challenge each other is a powerful combination. However, many board members still don’t fully grasp the finance side of running a business which is leaving some companies wide open to unnecessary risks.

Recent findings from a survey by Perceptive Research found that a majority of business owners thought that, outside of compliance, there was little additional value that an accountant could bring to their company - which is a little startling. 

The big guy in the red suit is not the only person who needs to be organised at this time of year. Businesses can’t afford to get too carried away over the silly season and should think about preparing a business plan to see them safely through. This is because there are a few things that, if not taken care of, could hurt them early on in the New Year.

Almost every business will experience a rise in costs somewhere along their supply chain: raw materials, transportation, wages and more. Between these rising costs and growing competition many businesses are experiencing significant margin pressure, which is eroding profits. So what should businesses be doing to avoid margin pressure? Here are three strategies to consider.

Debt. It’s a love-hate relationship – but it is something we seem to throw ourselves, and our businesses, into headfirst. Before you take out a business loan, consider the following.

You likely already know when something isn’t right. How can the competition afford to replace their fleet of motor vehicles and open that new store? There are those nagging questions about how well your business is performing and the perennial concern that costs seem to be rising faster than money is coming through the door.

For us the end of the financial year process is about uncovering opportunities for improvement that were undetectable earlier in the year. We also see it as the perfect time to test the status quo and, through fresh thinking, ensure that our clients are well positioned and ready to enter the new financial year. The end of financial year checklist below, summarises some of the keyareas to consider. So whether your interest lies in minimising your tax bill, getting good reporting data or simply streamlining your finance and accounting systems, then read on! 

For many business owners one of the drivers for being in business is the financial return. It is the reward for the risk you take and the effort you put in. But how much money can you draw out of a business without starving it of its lifeblood? Mike Atkinson guides owners through how to keep their paycheque in check.

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