Financial health check
A financial health check is to maintain the survival and growth of a business, along with reducing the risk of failure; controlling the finances of the company which is of the upmost importance. The two main aspects to this, are completing cashflow and trading budgets throughout a 12 month cycle. Many firms struggle to do this due to being busy from day-to-day activities.
Owners and directors have the responsibility of making tough business decisions. To ensure these are accurate, it is critical that they have realistic and up-to date forecasts of their purchases, sales, overheads, profit margins and cashflow.
Decisions to be made in the business with high importance, such as employments levels, investments, salaries, stock levels etc… Must be made with valid and reliable financial data, not just from assumptions. Failure to plan in business can lead to a lack of working capital and consequently trading operations can cease.
Trading forecasts should be updated and reassessed continually in line with actual performance so that the company knows where it is heading as the year goes by, not getting a shock several months afterwards when an auditor or accountant puts the figures together. Ideally, budget monitoring should be on a monthly or quarterly basis, but companies unable to commit to this should consider having their financial forecasting externally and objectively updated and analysed at the very minimum once a year in order to retain a degree of control on the business
The stages involved with our financial health check
Vat filing under MTD. Only £250 per year