Don’t ignore finances – protect against future shocks

While many small businesses struggle with budgeting and paying bills, there is one thing that most can agree on: the cost-of-living crisis poses an existential threat to their survival (78%).

But despite this focus on soaring costs, a recent survey found that small business owners still find themselves ignoring finances for fear of discovering how bad things really are with 25% refusing to look at what they’re doing with money because it may be worse than expected!

The survey, conducted by PayPal, revealed that a quarter don’t even look at what’s coming up in terms of revenue or expenditure because it could upset them too much!

Protecting against future shocks is more important than ever before. For those businesses that have looked into their current financial situation respondents in the PayPal survey found that this has given them more self-confidence (45%), with 42% saving for the future and 39% experiencing less stress.

Tips to help small business owners

Small business ownership comes with a unique set of challenges, one of which is managing finances. Without the same resources as larger businesses, it can be difficult to stay on top of expenses and keep money flowing into the company. However, there are a few things that small business owners can do to better manage their finances.

One way to stay organised is to create a budget and track spending on a regular basis. This will help you to identify areas where you may be overspending and make adjustments accordingly.

You should also build up a reserve of cash to cover unexpected costs or lean times. This can be achieved through careful planning and setting aside money each month.

Develop a realistic plan for how you will allocate your resources each month

And finally, don’t be afraid to seek professional help when needed and benefit from a team of accountants working with you. There are plenty of accounting and financial planning services out there that can give you the guidance you need to make sound decisions for your business. By taking these steps, you can get a better handle on your finances and keep your business on the path to success.

Contact our team of accountants at Oxted.