Ways to help ensure a prosperous 2024


At Beatons we know that the current financial climate continues to be challenging, and may mean that businesses could struggle for a number of reasons; costs are high, custom might be lower, not to mention the ever-changing financial rules and regulations.

As a new year begins we’d like to give an overview of some of the steps you can take now, to help breathe new life into your business, or at least help ensure things remain steady in 2024.

Is your financial information in good shape?

Monitoring and controlling the financial performance of your business is of paramount importance and regular management information is vital to its continued success.

These financial reports can seem tiresome when the business of getting on with the job is more pressing - but they’re crucial. They’ll make sure you’re on top of profit and loss and have a good idea of the balance sheet – helping you to see problems before they spiral.

Too many businesses neglect their management accounts, and it can be a costly mistake.

We help lots of our clients prepare management accounts on a monthly or quarterly basis. Could outsourcing this work mean that your firm hits the ground running in the new year?

Stress test expenditure

Growing your business is important and we know that entrepreneurial mindset really matters. But sometimes it can lead to ‘too much, too soon’. Even if your company is long established, there will be times when being cautious is the right thing to do.

Take a balanced approach to capital expenditure in the coming months and consider stress testing large expenses. For example, what if the market drops in the new year, will your profits be able to cope with the extra costs? This is especially important to consider in terms of higher interest costs.

Keep an eye on cashflow

Cash is the lifeblood of a business, but with so much emphasis usually put on turnover and profitability, it can be easy to overlook this fact. Of course, the bottom line is important, but poor cash flow management can drive a growing and/or profitable company out of business.

The risk is especially great for expanding companies. For example, if billing is delayed at the same time as stock is accumulated to fulfil increased orders, you can find yourself short of the cash needed to pay suppliers and employees. Preparation of budgets and cashflow forecasts are an important tool in identifying potential cashflow issues in the future. Use sensitivity calculations to reflect the position if targets are not achieved and consider plans to address that scenario if necessary. If this is a concern, do talk to us further about the benefits of projections and we can assist you with these.

In the meantime, we’ll leave you with this:

Why did the scarecrow get a big Christmas bonus?

Because he was outstanding in his field.

We’re experts in accountancy – not jokes!

Get in touch for any of your finance needs – 01473 659 777 or info@beatons.co.uk