Jonathan Vowles Chartered Accountants

 Facebook Twitter Linkedin RSS

0333 335 0422

Using The Language Of Business

Planning for your future ...

 
 


Some people spend more time planning their holidays than they do their finances, yet your business and your assets determine whether you can retire comfortably (or at all), pay for your kids' university fees, buy a house, and protect your family from an unexpected mishap or your own death ...

Finance and numbers are often referred to as the language of business.

Finance and numbers are often referred to as the language of business.

copyright: scanrail / 123rf stock photo (licensee)

Monitoring and controlling the financial performance of your business (or your family) is of paramount importance, and regular management information is vital to know what is happening in your business. Equally, planning for the future, for the continued success of your business, is obviously important.

"So why do so many business
owners not plan?"

I think that the answer is simply that most people are comfortable not planning, which means that they are not doing the best for themselves or their families. It might be that there are lots of good intentions out there in the business world, or that people are 'going to get round to it' someday, but simply don't. Whatever the answer, most people aren't planning and even fewer are planning regularly.

Finance and numbers are often referred to as the language of business. Numbers are factual things, but the interpretation of numbers and understanding of what particular numbers mean is what's really important here. This interpretation, and subsequent understanding, leads every business owner to a better understanding of their business.

"All of which wraps up into the importance of knowing your numbers!"

If you know where you are now, and have a dream or a goal of where you want to be, then your plan is just a way to move from here to there. The real trick is to break that plan down into manageable steps.

For example, if your business plan is to have sales of £1m, but you are currently on £200k sales, then your plan of activities is to get more sales and keep your customers happy, Simples!

But how do you achieve that? What is the first thing to do? You need to have a plan that is a series of small and achievable steps. But simply going out and getting loads of customers won't work! You need to have the ability to service and resource those customers.

Whilst a sales and marketing plan is often an important part of planning, you also need to review your processes and procedures so that they will cope with five times as many customers than you have now. Are all of your systems scalable? You also need to think about cash flow and the impact of growth on your bank balance as it won't all be positive!

"All this planning is interconnected and complicated even for a small business!"

So knowing your numbers is important. Planning what you want your numbers to be is just as important, but often you need a little bit of help with this. Help to get you into planning mode, help to provide the numbers or the interpretation of the numbers ... and that is where your friendly chartered accountant comes in handy.

Until next time ...

JONATHAN VOWLES


PS

If you'd like some real help to use the language of business to plan for the future of your business and your family, then I'd love to talk to you. Call me at JVCA on 0333 335 0422 and let's see how I can help you.


   Buffer
Click here to Share, Email or Bookmark this website

Précis (7)





More about Jonathan Vowles ...

I've been an accountant in and for business since 1987 and have a wide experience of consultancy, audit, accounts, taxation and wealth planning work from individuals and small businesses to multinational corporations and charities.

My eclectic interests in growing and developing business span a number of areas … and can be summarised as strategic business advice and tax saving advice.

I have worked with the Chamber of Commerce to deliver courses for people about starting up in business and have lectured about tax for a major accountancy practice and for Milton Keynes College.

I relax by reading fiction and by getting away from the office in a campervan.

Telephone:

0333 335 0422

Website:

http://www.jvca.co.uk


More of my blog posts for you to enjoy ...

Cash And Sales: The Keys To A Successful Business
Do you know your numbers?

In 1492, Columbus Sailed The Ocean Blue
And what a business start-up to get involved in ...

Why DIY Corporation Tax Returns Are A False Economy
There's a lot more to it than you think ...

Budget 2016: Can Britain Face The Challenges Ahead?
Mr Osborne certainly seems to think so ...

Pre-budget Dividend Tax Planning For March 2016
Are you going to be paying more?

Where Is The Best Place To Start A Business?
Start it here ... or there?

What Drives People To Start A Business?
And what keeps them going?

Tips Are For Life, Not Just For Christmas
But how are they taxed?


 

By Category ...

Budget Analysis (20)

General (5)

Guest Posts (1)

Legislation (4)

Pensions (1)

Property (1)

Running A Business (24)

Starting A Business (10)

Tax (10)

By Popularity ...

Salary Sacrifice: Get A Tesla S And ...

Top 10 Questions To Ask When Starti ...

Do I Need A Property Investment Com ...

Why DIY Corporation Tax Returns Are ...

Are You Thinking Of Starting A Busi ...

Start-Up Saturday And Global Entrep ...

What Drives People To Start A Busin ...

Are You Killing Your Own Business?

Five Top Tips For Crowdfunding Succ ...

HMRC Tax Investigations: Should You ...

Login ...



Remember me

Quote of the day ...

"Sometimes the littlest things in life are the hardest to take. You can sit on a mountain more comfortably than on a tack"