For everyone who has ever started a business, you would know that the primary concern is always to get to a point were your business starts to turn a profit. It is true that sometimes a business fails to launch because they are not able to make a profit, but do you ever wonder why even businesses that are making some kind of profit are still prone to collapsing? The best approach for any growing business should be a wholistic one, so not to just focus on making profit and reaching a particular turnover amount. It is very important to also put in place systems and resources to help you manage the cashflow in your business. If you do not look at your finances holistically, you may lose in the long run.
At SNC- TAX we believe in this kind of approach towards helping our clients. Our offerings are tailored in such a way that we can be a one stop service provider for all that you need to give your business a proper and sustainable structure from the foundation. If you are going to start a business you want to give it legitimacy and you want to be aligned with all legal requirements. We therefore offer our clients a service from getting your business registered with the CIPC, statutory registrations including tax, vat, PAYE, UIF, and COIDA. These are areas that a lot of businesses usually neglect and only come to once a problem has risen or if they cannot get into a prospective deal due to the other party’s prerequisites. Have a look at our newsletter for this month for more on the repercussion of non-compliance. A wise entrepreneur will get this admin sorted earlier to reduce the liabilities to their business and avoid any future costs.
Another area that any business needs to invest in is in the management of their finances. If you do not keep track of how money is coming in and going out of the business you are taking a huge gamble. Every company requires solid accounting. This is why part of our offering is accounting solutions to businesses and this includes Bookkeeping (Weekly or monthly recording of financial information), Reconciliations (Monthly debtors, creditors and bank reconciliations), Financial Statements (Monthly or Yearly income statement, balance sheet and cash flow statement). Yes indeed, all of that. The benefits to why you should not compromise on building up this area are seen in the benefits of well-run company finances which include:
- Budget management: knowing how much is at your disposal for specific projects and being able to keep track of it along the way to avoid overspending.
- Tax preparation – if you keep proper records of your finances as you operate, when tax season comes you have no problem with preparing your submissions
- Business analysis – your finances will tell you how well your business is doing, it is in the numbers after all. You can also see areas where you need to make strategic advancement and adjustments
- Stakeholder confidence – this could be business partners, potential funders etc., these are the people who want to know how well prepared and organized the business is, and their go to place is your finances
It is essential that the focus of entrepreneurs go beyond just making money, but what do you do with the money, how are you managing it, is it sustainable. Of course, there are plenty other areas to look at like market research, personnel management, business procedures and policies. However, all of this cannot be looked at separately from the areas touched on above. We can go through it together, contact us