Most small businesses close within 18 months of first operations, and more than often there isn’t exactly one outright reason that a business can fail. It’s actually quite a large number, whether the business owner is aware of them or not. There is help though – the services of a good chartered accountant in St Asaph can help you learn where you’re going wrong, and take measures to get back on track before the shutters of your small business come down for good. In the meantime, there is a small checklist that you can complete to help your accountant get a good picture of what exactly is going on.
How’s your cash flow? With small businesses, of course cash flows can be quite precarious and costs indeed seem to be coming from everywhere, making some things require quite a lot of juggling. This is normal – but running out of cash on a very frequent basis is symptomatic of a far larger issue at hand. If your businesses money is only coming from one source such as a loan or even an investor and they disappear, you can often be left dry. A good accountant in North Wales will examine every aspect of your accounts, to make sure everything is in good working order.
Have you expanded recently? Expansion is of course a good thing, but it is unbelievably easy to get ahead of yourself in business and throw money in too many directions at once. Success feels good it’s very understandable, and of course reinvesting what feels like a windfall into the business seems like a good and a sound business choice- overexpansion can signal the end for very many businesses. We’ve all heard the adage about all of the eggs in one basket, and expansion truly does need to be controlled and very careful in order to survive the short term, as well as the long.
A good accountant in North Wales will go through this and so much more with you, and more importantly will be able to consult on absolutely every decision that your business faces now and in the future.