{"id":7676,"date":"2021-07-05T11:42:28","date_gmt":"2021-07-05T11:42:28","guid":{"rendered":"https:\/\/thebusinessculture.co.uk\/hey\/the-importance-of-understanding-your-finances\/"},"modified":"2021-07-05T11:42:28","modified_gmt":"2021-07-05T11:42:28","slug":"the-importance-of-understanding-your-finances","status":"publish","type":"know-how","link":"https:\/\/thebusinessculture.co.uk\/hey\/know-how\/the-importance-of-understanding-your-finances\/","title":{"rendered":"The Importance of Understanding Your Finances"},"content":{"rendered":"

We have a question for you and we\u2019d like you to be 100% honest with your answer: Do you really<\/em> understand your finances?<\/strong><\/p>\n

There\u2019s absolutely nothing to be embarrassed about if you don\u2019t, as it can be an extremely difficult thing to achieve, especially when you have multiple employees to manage and clients to keep happy.<\/p>\n

Here at TreyBridge Accountants, we\u2019re dedicated to helping you to genuinely understand the entirety of your business transactions and financial health. We call this Navigating Your Numbers, which allows you to identify where things can be improved and how to achieve sustainable business growth.<\/p>\n

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Plan for the future<\/h2>\n

Understanding your finances, which includes every instance of income and expenditure, allows you plan more effectively for the future of your business. When we say \u201cfuture\u201d it really is wide-ranging, as we\u2019re talking about everything from next month to five years from now.<\/p>\n

Financial management and tax planning means the difference between simply getting by and having complete control over your company finances, which opens up a world of opportunities.<\/p>\n

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Manage your cash flow<\/h2>\n

Cash flow management is absolutely crucial to the running of a business, as you need to know that there\u2019s more coming in than there is going out. When you understand your finances, you gain the ability to pinpoint areas of improvement and streamline regular costs.<\/p>\n

Sometimes even the smallest changes can bring sizeable results. Whether it\u2019s cancelling a subscription you don\u2019t really need or simply buying your stationery and staff room supplies from a cheaper supplier, it can make all the difference in the long run.<\/p>\n

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Strategise your spending<\/h2>\n

What\u2019s the main thing standing in your way when it comes to business growth? It could be that you need to take on a new member of staff, ramp up your marketing activity or move into larger premises, yet your current financial situation won\u2019t allow it. Though understanding your finances may not free up all of the capital you require right away, it will definitely speed up the process.<\/p>\n

By cutting down costs, managing your cash flow and building up your company savings, you\u2019ll be able to make significant changes to your operational structure sooner and with greater confidence.<\/p>\n

 <\/p>\n

Prepare for the unexpected<\/h2>\n

The coronavirus pandemic is a strong example of how unexpected circumstances can arise. Though COVID is an unprecedented situation, there are other factors that can suddenly affect a business, such as temporary labour shortages, changes in consumer behaviours, an increase in competition within your sector, and in-house situations such as absenteeism or a key member of staff leaving the team.<\/p>\n

Whilst it\u2019s impossible to know what the future will bring, understanding your finances gives your business more freedom and agility. This plays a huge role in allowing you to respond effectively rather than falling behind on output and service delivery.<\/p>\n

 <\/p>\n

Increase your profits<\/h2>\n

Last but certainly not least, understanding the ins and outs of your company finances is key to increasing profits. By reducing costs, allocating core funds more precisely, staying on track of your transactions and forecasting for the future, you\u2019ll get more from your business and make it more profitable in the process.<\/p>\n

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We\u2019ll help you to understand your finances<\/h2>\n

The finance specialists at TreyBridge Accountants are dedicated to helping our clients take control over their finances and plan for sustainable business growth. To find out more, call our Yorkshire office on 01482 235575, our London office on 0207 885 0605, or fill in our contact form<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

We have a question for you and we\u2019d like you to be 100% honest with your answer: Do you really understand your finances? There\u2019s absolutely nothing to be embarrassed about","protected":false},"author":12312793,"featured_media":7675,"template":"","know_how_category":[],"class_list":["post-7676","know-how","type-know-how","status-publish","has-post-thumbnail","hentry"],"acf":[],"_links":{"self":[{"href":"https:\/\/thebusinessculture.co.uk\/hey\/wp-json\/wp\/v2\/know-how\/7676","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thebusinessculture.co.uk\/hey\/wp-json\/wp\/v2\/know-how"}],"about":[{"href":"https:\/\/thebusinessculture.co.uk\/hey\/wp-json\/wp\/v2\/types\/know-how"}],"author":[{"embeddable":true,"href":"https:\/\/thebusinessculture.co.uk\/hey\/wp-json\/wp\/v2\/users\/12312793"}],"version-history":[{"count":0,"href":"https:\/\/thebusinessculture.co.uk\/hey\/wp-json\/wp\/v2\/know-how\/7676\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/thebusinessculture.co.uk\/hey\/wp-json\/wp\/v2\/media\/7675"}],"wp:attachment":[{"href":"https:\/\/thebusinessculture.co.uk\/hey\/wp-json\/wp\/v2\/media?parent=7676"}],"wp:term":[{"taxonomy":"know_how_category","embeddable":true,"href":"https:\/\/thebusinessculture.co.uk\/hey\/wp-json\/wp\/v2\/know_how_category?post=7676"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}