Business finances are a fundamental building block for success and the future of the business. If you want to protect your business from unexpected changes to the market, economic issues, or unpredictable events, it’s best to partner with a financial advisor who understands the risks. Read on for more information on financial advice and future-proofing a business of any size.
Cash Reserves
In many ways, business finances work the same as personal finances; you need to accumulate some wealth and put money aside for a rainy day; at the same time, you need to ensure that your cash flow is protected. In your business, make sure you have a cash reserve built up,
One thing is certain there will be times when you need to use your cash reserves to run the business. It might be an economic shock, a change in market conditions, or something completely unpredictable like the Covid Pandemic. Future-proofing starts with cash reserves.
Tax Planning
When it comes to business planning, some business owners put tax issues aside for a later date; after all, why pay for tax today when you’re working on your cash flow? There are two ways to pay your taxes, you can pay them monthly or yearly, but there can be changes with annual bills.
Tax planning is important for future-proofing your business, and the best way to stay in control of taxes is to pay them monthly. If there are changes to the taxes, you will notice them right away and be better able to adapt to the economy of your business; otherwise, you might have shocks.
Financial Advisor
The financial services industry is always evolving, which is why it pays to have a financial advisor on your books. A financial advisor makes sure that your business is running correctly and you don’t have any surprises at the end of the year, but they can do much more than that.
If you want to maintain your books to a high standard and avoid tax issues, contact Kevin Canterbury Redstone Capital Management. Kevin Canterbury is a financial advisor with decades of experience; Redstone Capital Management can make your business future-proof.
Savings
When running a business, you might have different accounts for different purposes; it’s easy to lose track of your business accounts and have money stored there that isn’t accruing adequate interest. This is one of the things a financial advisor might talk to you about in the consultation.
In general, business accounts pay higher rates of interest than personal ones, so it’s worth moving considering these for your savings. Again, business savings are key to future-proofing your business as they give you some working capital and help to secure loans if needed.
Cash Flow Loans
While no business wants to take on any extra debt, it is sometimes unavoidable, especially if you have some cash flow trouble. Luckily cash flow loans are available for qualifying companies, even though you might not need them now; enquire about your suitability for a loan.
