It’s time to get serious about profits and cash
It’s traditional to have a yearly conversation with your accountant. Often the outcome is that you:
- didn’t make as much profit as you thought
- have a bigger tax bill than expected.
Turning tradition on its head
That’s why at Wessex Commercial we’ve turned tradition on its head, and get serious about profits and cash. By using cloud-software, providing regular management accounts and talking regularly through the year, we can:
- make sure you know how well each part of your business is doing (your margins)
- talk through the changes you need to improve profits
- show you how you can improve cashflow.
In addition, our Directors each have personal experience of running their own businesses, investing their own money. With skill-sets covering the strategic to the practical, our friendly team support you in making the difficult decisions which come with the role of business owner.
Do you really need to borrow?
Technology, start-ups and the emergence of alternative finance such as crown funding has made it so much easier to get your hands on cash to inject into your business. However it’s not always necessary to borrow. For many businesses, there are straightforward changes you can make to improve your cashflow. Here, Graham takes you through a scenario experienced by one of our clients.
Too much focus on sales?
We regularly talk to owners whose businesses are growing, while profit margins shrink, or, worse still, overall profits stagnate or fall. Our team don’t believe in chasing turnover, although it is easy to fall into that trap. The story goes something like this: grow business, secure funding for increased working capital requirements (cash needed), come under pressure from funders, take home less yourself.
If you’re ready to have a frank conversation about how your business is doing, in particular, how each product, service or area is doing, we’re all ears.
Here’s Graham illustrating how we helped one client improve their profits.