Achieve a healthy business with these 5 good habits.
Committing to some good habits will help to ensure your business is going in the right direction. Whilst this isn’t a definitive list, here are 5 habits we have identified to help you understand and manage your numbers more effectively.
Habit 1 – Get in control of your finances
A healthy business won’t survive unless you have control of your finances. Getting into a habit of reviewing the following items frequently is great business practice and will give you the confidence that everything is in check.
Make sure you carefully manage:
- expenses and bills – pay quickly to ensure goodwill
- invoices – chase all late payers
- payroll – ensure all staff records are up to date
- taxes – file your returns and pay on time, every time.
Habit 2 – Question the status-quo
How many times do people say, ‘well that’s what we’ve always done.’? With rising costs, it is good to get into the habit of questioning the norm. Could you be doing something a better way? Are your suppliers charging a price that’s fair? Are you still getting good value for money?
Habit 3 – Look backwards (for comparison purposes only!)
Despite always being told to look ahead, it can be handy to see how things are comparing to the same time last year. Look at your year-on-year sales. Are you doing better than the same time last year? Are costs and profit levels where they should be? Don’t let all the planning you have done go to waste.
Habit 4 – Take stock of stock
If you’re running a retail or manufacturing business then stock is your lifeblood. You should get into the practice of the following:
- carefully matching stock levels to sales forecasts
- making special provision for perishable goods
- ensuring storage is safe and secure
- finding your optimum stock levels.
Habit 5 – Speak to your accountant, regularly
Gone are the days when you meet you accountant twice a year to sign off your accounts. Having visibility and insight into your numbers is where your accountant can help and is the reason why we encourage our clients to communicate with us regularly.
Growing businesses need more from their accountant; as business accountants, analysts and advisors, we help you understand and manage your numbers to drive plans and decision making.
None of these habits are ground-breaking and neither should they be. We selected these 5 good habits for business to help you keep things on track and in control – which can make all the different to a healthy business.
Growing businesses need more from their accountant; as business accountants, analysts and advisors, we help you understand and manage your numbers to drive plans and decision making. If you would like to discuss the ways we can help you and your business simply call 0800 112 0880 or email [email protected].
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