CBHC Company News

27/05/2017

Whether it’s the opportunity to bring an innovative product
to market or the flexibility to be your own boss, becoming an entrepreneur is an
appealing option in the UK, with the latest figures released by Startup Britain
revealing a record breaking 581,173 businesses registered at Companies House in
2014. The local appetite for entrepreneurship is also at an all-time high with
Chelmsford featuring in the top 20 places in the UK to launch a new business. While setting up a business is an exciting and often very
rewarding venture, it is not without its risks with figures showing less than
half make it past the five year mark.

The ability to effectively manage
cashflow is one of the key factors that will govern long term success. Mismanaged
finances are a major cause of business failure in the early years, with a lack
of financial planning, failure to track costs and failure to chase payments the
main stumbling blocks.

Gary White, Business Development Director at CBHC Chartered
Accountants, said “For many first-time entrepreneurs there is a natural
tendency to throw all of their energy in to successfully delivering their
product or service because this is where their passion lies, however, managing
your finances and cashflow should be a key aspect of your business strategy
from the start – you need to thoroughly understand your numbers to keep the
business running and to grow it when the time is right.”

Recognising that this was a major pain point for many new
businesses, CBHC have set about empowering entrepreneurs to fully understand
their current financial position by helping them establish a financial
framework supported by innovative accounting tools that allow them to; accurately
forecast what they will spend versus what they will earn over a future period;
track money flowing in and out of the business on a daily basis; and get paid
quicker by making invoicing part of their workflow.

“Cashflow is the heartbeat of every business but it’s easy
for those without a financial background to lack confidence in managing the
financial health of their business or to put it off as a time consuming chore –
this needn’t be the case – one of the first things we do for our clients is to
introduce them to online accounting software, Xero, which is specifically
designed for business owners and presents real-time financial information in a
simple format that is easy to understand.”

“From the dashboard you can see bank balances, invoices,
bills and expense claims and can add new transactions with a click. The online
invoicing software allows you to create professional recurring invoices,
schedule bill payments to manage cashflow and invoice groups of customers –
with one click. Payments, returns and credits are also tracked automatically
which reduces manual labour and saves a huge amount of time.”

“For us, the software has revolutionised our client
relationships and facilitated better collaboration – Entrepreneurs often need
to make business critical decisions at a moment’s notice and often require our
professional advice to avoid taking unnecessary risks. We can simply log on to
the Xero system and instantly view their real-time financial data which allows
us to provide immediate advice that helps drive business success.”

“Running your own business is one of the easiest ways to
significantly increase your money making potential if you equip yourself with
the skills and knowledge to manage it correctly. Having good financial
practices and instant access to your real-time financial data will make the
journey easier and put your company on the right course for success,” Gary
added.

For more information on the services that CBHC offer, please get in touch: info@cbhc.uk.com

For tailored advice on how to best manage your personal and business finances, get in touch with us today and find out about how CBHC can help you do more with your money.

Get in touch with us today to find out more about how CBHC can help you with your business.