Which financial service does your business need?
It may seem that recent times have been exceedingly challenging ones for businesses in the UK – not only those that are only just getting started, but also those firms that have been around for a while. After all, we’ve had the coronavirus crisis, and even following on from that, we’ve had the Russian invasion of Ukraine, with such events threatening to exert downward pressure on the UK economy.
But let’s flip the perspective to something a bit more positive. According to statistics from the Federation of Small Businesses (FSB), there were some 5.5 million small businesses in the UK as of the start of 2021, and during the first half of that year, more than 340,000 businesses were registered. That tells you that even in times of adversity, ‘UK plc’ finds ways to survive and thrive.
And it could be much the same situation for your own business in 2022 – provided that it benefits from the right support. This brings us neatly onto the subject of the services and expertise that will aid your company in managing its cashflow and making the optimal financial decisions going forward.
But what are some of those specialised services, and at what times in your business’s development might you need to call upon them?
A business bank account
Keeping your business finances separate from your personal finances is something you will have hopefully made a big priority from the earliest days of your business’s operations. Having said that, it’s more common than you might think for small business owners to continue using their personal account for business banking; according to data cited by smallbusiness.co.uk, about a fifth of them do so.
Still, having a business bank account just makes sense. This type of bank account will be designed with small business requirements in mind, giving heightened protection for you and your business, and is also likely to offer freebies and perks, such as free banking for a certain period of time.
Doing everything you can to protect what you have built up as a business owner is of imperative importance. The first type of business insurance that you should consider is employers’ liability insurance, on the basis that the moment you take on your first employee, you will be legally obliged to take out this form of cover.
The other forms of insurance that you purchase for your business will likely depend on the specific nature of your company and its operations. Nonetheless, such types of policy as public liability insurance, buildings insurance for the company premises, and even key person insurance may also be essential, near-essential, or at least nigh-on indispensable for your business as it grows.
Accounting and/or bookkeeping
You might imagine that your firm’s accounting and bookkeeping function is something that it’s pretty important to keep ‘in-house’. But in truth, there are all manner of reasons why companies of various sizes end up outsourcing their accounting and/or bookkeeping tasks. You might want to free up more of your own time to concentrate on growing your core business, or you may like how outsourcing gives you flexible access to skilled and experienced accounting professionals.
And in today’s world of sophisticated cloud accounting software packages and highly reputable local accountants in Ipswich, London, Manchester and other key parts of the UK, the decision to outsource your own firm’s accounting has arguably never been a safer bet than it is now.
Financial director services
Never mind just the accounting and/or bookkeeping – have you considered even outsourcing your company’s financial director? It is a more feasible and sensible option than you might think.
As the Institute of Directors (IoD) explains, a financial director – otherwise sometimes referred to as a ‘finance director’, or even just ‘FD’ – has the role of providing the strategic and financial guidance that helps a company to realise its business objectives. In addition, the FD will typically develop the various policies and procedures that will help make sure the given business’s all-round financial management is strong.
In short, an FD can have a really important role to play, for a firm of any size and stage of growth. And as with the outsourcing of accounting, taking on an external finance director, at least at first, could give your business crucial flexibility, as well as the benefit of a ‘fresh set of eyes’ to provide a different perspective on your business strategy and financial performance.
Outsourced financial director services like those offered by Practical CFO and other respected providers could therefore be invaluable for your business as it negotiates the challenges posed by 2022 and the months and years beyond.
It is just one more reminder of the considerable value that outsourced financial services in general can have for your company – just so long as you choose the right ones.
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