Plan to Succeed: finance

Have you heard the saying, “if you fail to plan, you are planning to fail“? COVID19 is here to prove to us that it’s no cliche! Many are becoming more aware of their financial wellness, and cautious about planning for the future (unforeseen events). Would R10 000, R20 000 have been enough to keep your bakery business amid the national lockdown? It might sound like that’s not a lot, but in difficult economic times/dry seasons, every cent counts.

The first most important step is to set specific short, medium, and long-term financial goals/targets. These goals can include saving up for property, making sure that you are adequately financially provisioned for unforeseen events, and so much more. This process is called financial planning.

A financial plan is obviously different from your financial statements. Here, you make projections for the coming months/years, forecasting income/profits. Hire a qualified and licenced financial planner who will assist you in assessing every aspect of your business finances to help you design and regularly review your financial plan as your business grows.

At Accase Solutions, we offer Financial administrations services, Management Of Cashflow and Budgeting. To get to the bigger goal, you need to hit the smaller targets. Let’s break it down:

Budgeting is simply balancing your expenses with your income, creating a plan to spend your money. This spending plan allows you to determine in advance whether you will have enough money to do the things you need to do or would like to do. 

Cash flow management is basically tracking how much money is coming into and out of your business. This helps you predict how much money will be available to your business in the future.

financial administrator is responsible for managing the accounts receivables and payables of the organization.

…moving right along…

To help you gets started, here are six steps to create your financial plan:

1️⃣ To start off, think about what you want to accomplish and ask yourself… Do I need to expand? Do I need more equipment? Do I need to hire more staff? Do I need other new resources? Most importantly, how will my plan affect my cash flow?

2️⃣ Create monthly financial projections by recording your anticipated income based on sales forecasts and anticipated expenses for labor, supplies, overhead, etc..

3️⃣ Through the year, compare actual results with your projections to see if you’re on target or need to adjust. Monitoring helps you spot financial problems before they get out of hand.

✳ If you don’t have the expertise, consider hiring an expert to help you put together your financial plan.

Accase Solutions is registered with the IAC, Institute of Accounting and Commerce as a Certified Tax Practitioner since registration of Accase Solutions.

Practicing number: PR0100503.
Get in touch with us, a consultant await your call 📲😊

5 Ways Of How To Cut Costs In Your Business

Saving money is one of the prerequisites for business success. Cut costs by any means, don’t wait for your ship to sink!

Robust savings give your business the ability to grow. “It is smart to put back to push forward.”

Saving money is critical for the survival of your business, the global pandemic couldn’t be a better example – it took a toll on many businesses. Are you budgeting and making necessary adjustments for your business?

Now lets to the HOW:

1️⃣ Cut on traditional marketing. and explore the lucrative digital platforms.

Digital marketing is more affordable and much more lucrative, there are no limitations. It enables you to reach a bigger audience and when utilizing the right tools, you can reach a more specific target.

The first thing would be to find a team of experts, or outsource a freelancer while you focus on other parts of the business.

2️⃣ Outsource if you can – employees are essential to getting work done but they’re costly.

Having employees means having fixed costs. Although it’s great to have an internal team, you can always outsource freelancers. This gives you a great competitive advantage, controlled costs, and increased reach. You can get access to capabilities and facilities otherwise not accessible or affordable while saving costs.

3️⃣ Have more virtual meetings if on-site meetings are not a MUST.

There’s a lot of costs that go into one meeting: transport (worse if you are far apart), meal/drinks, plus a lot more time is lost in between. A virtual meeting only requires an internet connection.

If is it not necessary to meet in person, opt for virtual. It’s an even bigger loss if the deal is not sealed.

4️⃣ Explore partnerships and collaborations.

It’s not a cliché or a buzzword, collaboration is very necessary for growth. On the contrary, it makes teamwork successful.

The benefits include: networking and opening up new channels for communication, learning from others (especially how they do business), and boosts the morale of your business.

5️⃣ Get interns – they are more social and effortlessly improve your search engine optimization.

Most young people are generally social and like to talk about things they are proud of. Now imagine the FREE Word of Mouth you would get when they tell everybody about the great company they work for?

Did you know that hiring interns help you save on taxes?

The Employment Tax Incentive (ETI) is an incentive put in place by the government to encourage employers to hire individuals who are young and qualified but inexperienced, by reducing the cost of employing them. You just might want to think about it!

Those are just a few ways of going about it, for obvious reasons it differs from industry to industry. How are you saving and cutting off costs in your business?