FINANCE
Advice – Baines Jewitt director Don Adams .
quality standards and is well-placed to provide accountancy , tax and business advice to organisations of all shapes and sizes . It also means we have links to reputable local law firms , including fellow UK200Group members ,” explains Don .
It encompasses reviewing sales figures , cost management , profitability and comparing actual performance against set targets .
For a comprehensive analysis , you should : > Conduct an analysis : Assess your business ’ s strengths , weaknesses , opportunities and threats ( SWOT ).
> Analyse financial statements : Regularly review balance sheets , income statements , and cash flow statements .
> Monitor customer and client relationships : Consistent feedback can help identify strengths and areas needing improvement .
Maintaining financial hygiene “ Financial hygiene refers to the practices that keep a business ’ s finances in order and facilitate smooth operations . This includes maintaining accurate records , adhering to budgets and managing debt effectively ,” explains Don .
Key practices for maintaining financial hygiene are : > Keeping meticulous financial records : Updated records help in making informed decisions and are necessary for compliance .
> Implementing strict budgeting : Plan your expenditures within your means and review your budgets frequently .
> Managing debt wisely : Understand the cost of borrowing and ensure you have a solid plan for debt repayment .
Cash flow management Cash flow is the lifeline of any small business . Positive cash flow ensures you have enough funds to pay expenses ,
purchase inventory and invest in growth initiatives .
Examples of how you can manage your cash flow effectively include : > Reducing trade debtors : Use strategies like prompt invoicing and incentives for early payment to get cash quickly .
> Negotiating better payment terms : Without compromising supplier relationships , negotiate longer payment terms to retain cash for longer .
> Managing inventory : Overstocking ties up cash and increases storage costs , so balance your inventory levels to meet demand without excess .
Investing in growth “ For any business looking to invest in growth or looking at funding for growth , an accountancy firm can help to prepare a business plan , financial valuations and documents needed to help a business apply for funding for growth ,” adds Don .
Mergers and acquisitions An accountant will also help with due diligence , preparing a business for sale or helping with the acquisition alongside a reputable law firm .
“ As a member of the UK200Group – the UK ’ s leading association of independent chartered accountants and law firms – Baines Jewitt operates to the highest
As a well-established chartered accountancy firm , Baines Jewitt can provide expert advice to help ambitious firms make informed financial decisions that propel their businesses forward .
If you ’ d like to discuss the next steps , call 01642 632032 , email info @ bainesjewitt . co . uk or visit bainesjewitt . co . uk
Pilot programmes to strengthen local business
Local firms will also be pleased to discover that Tees Valley Combined Authority recently announced that Tees Valley companies are to benefit from innovative pilot programmes , including £ 2.3m of direct grant funding to support those with the drive and ambition to grow .
The five schemes include :
> An intensive accelerator support programme for entrepreneurs , delivered through six-month incubation or 12-week scale-up programmes .
> A mentoring programme offering focused support from subject matter experts to drive business growth .
> An innovation programme connecting SMEs to large organisations , supporting smaller firms to develop new products and access new markets .
> A net zero initiative to help firms develop the certification required to access Tees Valley tier 1 and 2 supply chains .
> Targeted support for entrepreneurs encountering multiple socio-economic barriers to self-employment and business growth funding .
Conclusion By focusing on financial strategy , tax planning , business performance analysis , financial hygiene and cash flow management , businesses can build a solid foundation for success .
Consistent assessment and adaptation are key to remaining agile in an everchanging business landscape .
The voice of business in the Tees region | 57