Business Skills Workshop on Finance
9 October @ 9:30 am - 11:30 am
£9.00
Join us for our monthly Business Skills Workshop!
Running your business includes using the right tools and channels to create a strategy that can work on a budget. Join us each month for tips on how to enhance your business skills.
This month, we visit NFBP expert member Jan Willis of Cloud Eleven Accountants.
Basic finance skills skills are crucial for tracking income and expenses, planning for future growth and making informed financial decisions.
Jan will give an introduction and explanation of key essential finance skills:
1. Cash Flow Management:
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Tracking inflows and outflows:Monitoring all money coming into and going out of the business is vital. This includes sales revenue, expenses, loan payments and other transactions.
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Forecasting:Predicting future cash flow helps anticipate potential shortages or surpluses, allowing for proactive adjustments to spending or seeking additional funding if needed.
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Managing working capital:Ensuring the business has enough cash on hand to cover daily operations and unexpected expenses.
2. Budgeting:
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Creating a realistic budget:Developing a plan for how the business will allocate its financial resources, including revenue and expenses.
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Monitoring actual performance against the budget:Regularly comparing actual spending and revenue to the budget allows for identifying and addressing discrepancies.
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Adjusting the budget as needed:Budgets are not static and should be updated as the business evolves and circumstances change.
3. Financial Analysis:
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Understanding financial statements:Being able to interpret income statements, balance sheets, and cash flow statements provides insights into the business’s financial health.
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Calculating key financial ratios:Ratios like profit margin offer valuable insights into profitability, solvency and liquidity.
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Identifying trends and patterns:Analysing financial data over time helps identify areas of strength and weakness, allowing for strategic decision-making.
4. Bookkeeping and Accounting:
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Keeping accurate records:Maintaining detailed records of all financial transactions, including sales receipts, invoices and bank statements.
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Understanding basic accounting principles:Familiarising oneself with concepts like double-entry bookkeeping can streamline financial management.
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Knowing when to outsource:Deciding whether to handle bookkeeping internally or hire a professional accountant.
5. Financial Planning:
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Setting financial goals:Defining specific, measurable, achievable, relevant and time-bound (SMART) financial objectives.
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Developing a financial plan:Creating a roadmap to achieve those goals, including strategies for revenue generation, cost management and investment.
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Seeking professional advice:Consulting with a financial advisor or accountant can provide valuable guidance and support.
6. Understanding Funding Options:
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Exploring different funding sources:Understanding options like loans, equity financing, grants, and crowdfunding.
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Evaluating the cost of capital:Assessing the interest rates, fees, and other costs associated with different funding options.
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Making informed decisions about borrowing and investment:Understanding the implications of debt and equity financing on the business.
By developing these basic finance skills, you can improve your financial decision-making, manage risk more effectively and increase your chances of long-term success!
This Business Skills workshop includes plenty of opportunity for you to network with other businesses, to learn from a business expert and to ask questions, as we work together to support you as you grow your business.