Prospects look better but stay on your toes

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Harris & Co

1st February 2016

Economic Advice & Solutions

Harris and Co

ALTHOUGH prospects for business look better than they have done for some time, there's still a real need to call on all the help and advice you can get when it comes to business finance.

The economy has improved and many businesses are feeling more confident about the future. However, the Chancellor has recently issued a warning about the severe threats in the world economy and how they might affect the recovery of our own economy. Now, maybe more than ever, is the time to stay on your toes and make sure your business model is working for you.

At Harris and Co, we believe that there's more to being an accountant than simply offering practical financial advice - although that is a major part of what we do. But it is equally important to be a source of support and guidance, and to help businesses make the right decisions, looking at forward planning and establishing a solid base, as well as making sure the financial situation is healthy.

With this in mind, we have a number of points to follow that should help any small or medium-sized business remain on track.

Sales - look at your sales and identify ways to increase the quantities sold, the number of customers, the price or the number of times a customer buys. These are the key variables in increasing sales.

Cost - look critically at your cost base and identify any you can reduce, especially the big costs.

Daily break-even sales - check every day how you've done against your break-even figure and if you don't hit that figure regularly, go back to steps 1 and 2.

Plan ahead - do a 12-month cash flow forecast based on realistic assumptions and give yourself some margin for error. Use the cash flow to identify how much you need and when you will need it. Then talk to your bank well ahead of time.

Debtors - monitor daily and chase them frequently.

Creditors - monitor regularly and don't let major debt build up.

Harris and Co's approach is to help clients put in place the specific structures and procedures that are crucial to their ongoing success, then keep them under review to safeguard the long-term future of the company.

For further information contact Phil Harris on 01604 660661 or visit www.harrisandco.biz