Cashflow Archives - Stepping Stones Accountancy

Should your business have a savings account? https://steppingstonesaccountancy.co.uk/wp-content/uploads/2023/11/should-your-business-have-a-savings-account.jpg 758 513 Stepping Stones Accountancy Stepping Stones Accountancy //steppingstonesaccountancy.co.uk/wp-content/uploads/2017/01/stepping-stones-acountancy-icon.png 24 November 2023 27 November 2023

Should your business have a savings account?

As individuals we are encouraged from a very young age to open a savings account so that money can be put away for future needs. So, the key question is why do businesses not adopt the same approach and use a business savings account?

Speaking to several business owners some of the common reasons of not having a savings account are because spare cash is limited, locking up money in an account that is difficult to access is not viable and managing multiple accounts can cause issues. However, business bank accounts are now very flexible which makes it very easy to segregate money in and out of savings accounts by the month, by the week, by the day and by the hour.

They key benefit of having access to a business savings account is taking advantage of a better interest rate which in turn increases the value of investment being put aside. One important recommendation is to keep a good track of cash flow and accurately forecast expenditure versus income. This will ensure that any additional funds can quickly be transferred to savings and can also remain in the account for a longer period rather than it having to be quickly moved to be used for bill payments.

Of course, the fact that funds can quickly be moved from a savings account into a normal account for paying an unexpected bill is also beneficial.

We have spoken a lot about flexibility and the fact transferring money is made easy through the most common type of savings account, also known as an instant access account. However, there are also some alternative options available.

Firstly, there is a fixed term account which is used when money transferred into it will remain in the account for a set-period and can only be accessed when this time frame has lapsed. This is ideal for a business that is comfortable with cashflow levels and knows that they won’t need access to the savings. This type of account yields the best interest rate so offers a higher level of income.

Secondly, there is a hybrid savings account more commonly known as a notice savings account. It will offer better interest rates compared to a standard savings account but less than a fixed term account. You can withdraw money at any time but the process to extract the money is not instantaneous but will involve an agreed notice period.

In conclusion, there are a number of reasons why a business should use a savings account. It provides good returns and excellent flexibility. Access to money is easy, there are no restrictions on minimum or maximum contributions and withdrawals can be easily planned.

If you have questions or need some accountancy help, please call us on 01173 700 079 or e-mail hello@steppingstonesaccountancy.co.uk. You can also book a free call with Yarka – https://calendly.com/yarka-ssa/20min

Can a smart meter help with business costs? https://steppingstonesaccountancy.co.uk/wp-content/uploads/2023/08/Can-a-smart-meter-help-with-business-costs.jpg 758 513 Stepping Stones Accountancy Stepping Stones Accountancy //steppingstonesaccountancy.co.uk/wp-content/uploads/2017/01/stepping-stones-acountancy-icon.png 23 August 2023 25 August 2023

Can a smart meter help with business costs?

Staying on top of your costs is important for a small business and adopting a policy for best practice cost savings can be extremely beneficial. As the UK economy continues to fluctuate, we are seeing increasing utility charges. Focusing on running costs and energy usage should form an integral part of the businesses best practice cost saving policy.

Clearly staff have a responsibility for embracing cost savings, areas such as keeping temperatures to an optimum level, switching to energy efficient lightbulbs, switching off devices rather than leaving on standby and moving to a paper-free ethos are just some areas that can be focussed on. However, ultimately it is the business owner who must lead by example and make sure all the best practice savings are deployed.

Something which will help almost immediately is the installation of a smart meter. This device will allow better understanding and control of the business’s energy usage and costs. The UK Government are big advocates that the business community start to benefit from the introduction of smart meters.

A smart meter will provide real-time analysis on energy usage which is then fed directly back to the energy suppliers. This information can put a business owner in better control with greater visibility of how to make the business cleaner whilst also saving on running costs.

3 key benefits of why your business should install a smart meter:

A smart meter gives immediate data which results in accurate billing. In essence, you will only pay for the energy that you use so from a budgeting perspective you can accurately predict your energy costs and help to successfully manage cashflow.
You have total control and can easily manage every aspect of your energy usage.
Not only do you benefit from real-time energy analysis, but you can also make use of historical data. The smart meter will give you access to energy statistics dating back 12 months. This helps with monitoring the success of cost saving activities that have been deployed and with budgeting.

Whilst we are not experts with the installation of smart meters, we are a firm of proactive accountants looking to help the small business community.

If you have any questions or need some help, please call us on 01173 700 079 or e-mail hello@steppingstonesaccountancy.co.uk. You can also book a free 30-minute call with Yarka – https://calendly.com/yarka-ssa/30min

Managing Cashflow https://steppingstonesaccountancy.co.uk/wp-content/themes/blade/images/empty/thumbnail.jpg 150 150 Stepping Stones Accountancy Stepping Stones Accountancy //steppingstonesaccountancy.co.uk/wp-content/uploads/2017/01/stepping-stones-acountancy-icon.png 21 December 2020 21 December 2020

Managing Cashflow

In our latest animated video we show how with a little bit of help from your accountant and a cashflow forecast report, you can budget for new equipment that is needed in your business.

Cashflow Forecasting https://steppingstonesaccountancy.co.uk/wp-content/uploads/2020/08/cashflow-forecasting.jpg 758 513 Stepping Stones Accountancy Stepping Stones Accountancy //steppingstonesaccountancy.co.uk/wp-content/uploads/2017/01/stepping-stones-acountancy-icon.png 28 August 2020 25 August 2020

Cashflow Forecasting

Cashflow has never been more important for businesses than in 2020. The Coronavirus pandemic has shaken businesses to the core and with the potential of a second wave a potential second wave, company owners are left wondering if their business can survive another lockdown.

With government support tapering and uncertainty about what the next few months hold, cashflow forecasting is vital to understand the position of the business. Historically, many owners have worked this out in their heads or in convoluted spreadsheets but the danger is that something gets forgotten and a large, unaccounted for, outgoing could cripple the business.

Now, more than ever, accounting software is vital. A simple, easy to understand, forecasting tool that helps businesses understand their financial position and identify areas for concern, before they become overwhelming, is something that can help businesses navigate the turbulent months ahead. By understanding the business needs in advance, company owners can try to mitigate any risks identified, putting them in a stronger position to survive any further lockdowns that may come.

Our job is to guide you through the implementation and interpretation of the data in order to provide accurate cashflow forecasting. Making the process as simple and easy to manage as possible will ensure that you have real time data, providing accurate updates at any time to help underpin any vital business decisions that need to be made.

If you have any questions or need some assistance then please call us on 01173 700 079 or e-mail hello@steppingstonesaccountancy.co.uk.

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