How do you feel about the VAT threshold? I know many people are terrified of going over the VAT threshold in the UK, but it isn’t something that should scare you; it’s something that’s good for your business!
That’s why I want to talk to you about sailing over the VAT threshold without the fear, worry and self-sabotage that can go with it, so you can enjoy the growth of your business instead of worrying about whether you're going to go over the VAT threshold or not.
Because that VAT threshold isn't something to be scared of, and yet, it stops people from growing and reaching their potential. So let’s cover the basics, so you can drop the fear and overwhelm and sail through that VAT threshold instead.
In the UK, the VAT threshold is currently set at £85,000. That’s £85k worth of revenue and is done on a rolling 12-month basis. So it's not relevant to the calendar year or your year-end. You need to know when...
Do the words cash flow management bring you out in hives? Do you struggle to understand how cash flow and pricing are linked? Do you understand how critical cash flow is to your business? Cash flow is an essential aspect of your business, and you need to understand it. But if it currently makes your head spin, you’re not alone!
So if you’re looking to better understand and manage it, keep reading, as this blog post is just what you need.
Cash flow management is basically what's coming in your business and what's going out of it. It also covers what's gone out of your business and what’s coming up and due to go out of your business. Because it’s essential to know what payments you have coming up so that you know if you've got enough cash to last you.
There's a saying: ‘Revenue is vanity, profit is sanity, but cash is king’. It’s a good one to remember because, ultimately, if you don’t have cash in your business,...
When you start your own business, you want it to do well. That’s why it’s so important to build it on the right foundations. Those pillars provide stability for your business to grow on. And it’s no different for your financial system. It, too, needs to be built on the right foundations. Because without it, you’ll find yourself and your business floundering.
There are four key pillars to consider for a sound financial system to be put in place. Otherwise known as the 4Ps, these are pricing, profit, performance, and planning. So if you’re looking to get your business onto solid financial footings, keep reading to find out more about each of these pillars.
This is the main one I talk about the most because it’s so important. If you can get your pricing right, particularly in a service business, other things will follow. Getting your pricing right means you can pay yourself more, earn more, and pay other people to...
Do you have a contingency plan in place for your business? It’s a subject that can seem quite boring and one many business owners avoid. But it’s an important and essential thing to think about. Because you can’t always forecast when you’re going to need to take time out from your business - but you can have a plan in place that helps cover most scenarios.
So as a bit of background, I’ve been going through treatment for breast cancer recently. And when faced with my diagnosis, I also had to decide what to do about my business. Obviously, it’s not the most important thing to be thinking about when you're diagnosed with something like cancer, but it was important that I try and keep working during this time. Because I'm at home all the time, there's no risk associated with me working, but if I was in an office or something like that, there might have been.
But when you’re faced...
What even is a CFO? A CFO is a Chief Financial Officer or Finance Director (FD).
Every big business has a finance director or CFO and they are needed to keep the financial affairs of the business in line and to provide valuable financial management information to the business. They are your trusted adviser and translator of the numbers!
In small businesses you don’t need a full-time FD/CFO but you do still want to know what your numbers look like on a monthly basis and have someone checking on a regular basis. People often think that they can’t afford to have finance support in a business. This is very different from a year end accountant where they are producing the statutory returns for your business. They are not there to analyse your business and understand your business in detail but merely to submit the tax and legal requirements.
If you just have a year end accountant, this can mean that you only look at your accounts once a...
It’s so important to have an accounting system in your business. It doesn't matter how small you are or how big you are, everything is made easier by having an accounting system.
I am Xero certified because I love it, and I highly recommend Xero. I find QuickBooks really clunky, so if you're choosing between QuickBooks and Xero, I'd say Xero every time.
Why do I need an accounting system?
Having an accounting system will save you lots of time in the long run. It will also save you time in the short term by having all your invoices sent from the system, help you collect money via GoCardless and seamlessly match it all. Plus If you have an accounting system like Xero, you can connect up your bank, Stripe and PayPal. This makes it very easy to keep track of your numbers, because every business needs to know what their numbers are.
You can also take photos of your receipts when you are out and about (when that can happen again!) and then all receipts and invoices are in one place...
So today I want to talk to you about five ways to avoid discounting when talking to a client.
Picture the scenario, you send a proposal to a client and the client says they can't afford that. And the And you immediately offer to discount with no reason to do so. Instead, take a deep breath and do one of the following 5 things:
What are your financial goals for 2021? Do you want to earn more money? I know, for many that seems a bit of a silly question - after all, who doesn’t want to earn more!
No matter what type of business you have, the easiest way for you to earn more money is to put up your prices. But for that to happen successfully, you need to have a plan. And that’s something that will take time.
It’s relatively easy to take what you already have and simply increase the price. But what if you haven’t set up your package correctly in the first place? What if you realise clients want something that isn’t in that package? And what if you were already underpricing or overpricing - what then?
If you want to earn more in 2021, you need to ensure that your foundations are correct first. You need to understand how to price in a way that includes your financial goals, your business costs and your desired profit margins. You need...
Do you have a plan for 2021 yet? Of course not, it’s too early! But with just a month left of this year, when is it a good time to start planning 2021? And are you someone who will usually plan in advance, or are you more of a spontaneous, in the moment kind of person?
I think, as a business owner, it’s incredibly important that you get into the habit of planning ahead. Not only does it reduce stress, but it also helps increase your chances of success - and this is especially important if you’re looking to increase your prices in the year ahead.
Because if you’re looking to hit a revenue goal, you need to know how you’re going to get there. It could mean you need to increase your prices, but it’s also about getting clear on what you have available and how many services you need to sell, to reach your revenue target.
Putting prices up takes time and care. You need to look at the...