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How to get your finances in great shape for the second half of the year

POSTED: 15th June 2013
IN: Guides
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After reviewing the current financial position of your business to be clear on what you have achieved in the first six months of the year and what areas need improvement, your business is ready to focus on the future.

undefinedSales

Getting sales higher is the key to any successful business. Talk closely with your sales team to identify areas of improvement, how to maximise sales with existing customers and how to win new business.

Purchases

Take a close look at your outgoings. Are there areas you can cut back on or goods and services that you can dispose of altogether?

Are there opportunities to improve profit margins by cutting the cost of sales?

Cashflow and business planning

Once you have reviewed both the income and outgoings of the business, you are ready to update your cashflow statement.

By having a good idea of what cash is available when, it will help the business cover one-off outgoings and any investment required.

This will enable you to know exactly what your financial situation is going into the second half of the year and make business planning easier.

Debt

Check through any debts, loans or other payments that you are being charged interest on. Pay off the debts which charge the most interest first.

If your firm has any spare funds, it makes sense to use it to pay off debts first. This is because the interest you pay on servicing debts is likely to be higher than the income you receive on savings.

Savings

If you have spare funds and no debts, then invest the money in a savings account to earn some interest.

Currently, rates are low, but by researching the market, you can find the best rate of interest available on the type of savings account you require.

If you will need to access your funds, then choose an easy-access savings account, so that you can earn interest but still get to your money should you need to.

If you can put your money away for longer, then choose a deposit savings account that should pay a slightly higher rate of interest.

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  • Business
  • Invoice Finance
  • SME
  • Business Savings
  • Guide

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