Tips for setting up a new business

Setting up your own business is often a daunting experience for many, while there will no doubt be vast number of factors involved, money will no doubt be the main source of your sleepless nights. Are you investing your capital correctly? Will you make enough this month to cover your outgoings? What if that client doesn’t pay on time?

As you start a new business, you can hopefully take comfort from your initial business plan but as time goes on you will more than likely stray from the path it dictated. This is not necessarily a bad thing either, the real world will always vary from preconceived ideas, suppliers will or won’t extend credit and clients will push the meaning of payment terms to the limit. As such managing your finances can be tough for those who started a business with a different skill set. Perhaps investing in attending a training course or finance conference, could equip you with the extra skills to help. Learning how to audit your own accounts can save you money in both accountants’ fees, but also safeguards your business from the taxman. Other courses cover more basic elements of accountancy including terminology and the basics of budgetary controls.

Another skill set that many find difficult to master in small to medium businesses, is credit control. Making the call to the non-paying client and telling them that you are suspending works can seem counter intuitive. However, a non-paying client really translates as not an actual client. So while you may disturb the relationship by demanding your money, realistically there’s not much of a relationship if they fail to make payment for the provided goods and services.

CIPFA are the Chartered Institute of Professional Finance and Accountancy in the Uk, they offer a range of services to people in the financial sector such as finance recruitment and finance conferences. They also offer a range of training courses covering a range of skill levels.

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