Financial Management Basics

✅ Basics of Financial Management in the UK

Financial management is a critical part of running a business. It provides you with an understanding of the sources of income and expense for your business and how best to use them. This page will provide you with the basics of financial management for businesses based in the UK.

Income

Income comes from two main sources: sales and other investments. Sales refer to any money that comes in from selling goods or services that you provide. Investment income could include income from savings, stocks, or other investments. Make sure to remember the cost of marketing and selling your services, as these will be deducted from the sales income before you see the profit.

Expenses

Expenses refer to the money that your business must pay out for running your operations. This includes paying for taxes, fees, utilities, rent, payroll, and any other costs associated with running your business. Keeping track of these expenses is very important for keeping on top of your financial situation.

❓ What needs to be tracked?

In order to effectively manage your finances, it is important to track income and expenses on a regular basis. This includes monitoring incoming sales, investment income, and any expenses from the business. Tracking can be done manually or using an accounting software package. Accurate and up-to-date records are important here to ensure that all funds are accounted for.

⚖️ Tax and Other Regulations

It’s important to be aware of the tax and other legal obligations of running a business in the UK. Being aware of these regulations and ensuring that your finances are in line with them is key for avoiding any unnecessary fines or penalties. Professional advice may be necessary in order to fully understand these regulations.

Business Reports

Business reports are essential for tracking and monitoring financial performance. These reports provide an overview of income and expenses over a set period of time and allows you to identify areas that can be improved upon. Having a good understanding of the financial performance is essential for making key decisions to help move the business forward.

Business Growth Coaching

At Business Growth Coaching, we understand the importance of financial management. Our team of experienced professionals can provide you with all the help and advice you need to get your financial management systems up and running. Get in touch today to find out more about how we can help your business.