A growing business means a growing need for money. As you look to make new inroads into the market, you will probably take on more staff, seek bigger premises in more competitive areas, and inject more cash into your production line. All of this comes at a cost and, while increased revenue may cover much of it, you may still need to generate money from other sources.
Since Milton Keynes became the second biggest breeding ground for startups in the country, small businesses have had more and more opportunities to fund their enterprise — but choosing the right course of action isn’t always a simple decision. For a start, you need to be sure that you are able to make repayments on any loans you take out and any interest you accrue. Working with a Milton Keynes accountant enables you to talk through the options with a professional, and draw conclusions based on shrewd calculations.
In a bygone era, the only choice you had when it came to small business funding was which bank you wanted to take out a loan with. Nowadays, however, there are far more options for small business owners to consider. For example, short-term loans such as invoice advances and online lending can help out companies who only need a last-minute cash fix. But, whether you’re applying for a small loan or a large one, you need to know without a doubt that you are going to be able to pay it back in a reasonable space of time.
This is where a Milton Keynes accountant comes in. Having someone to check over your accounts, work through your books and cast projections based on the results makes it much easier to determine whether your plans are financially viable. At this point in your business, you don’t want to run the risk of a major setback. Knowing that every action you make has been financially vetted will keep your company pushing forward at a steady pace.
Once you have a clearer idea of how much you need to make and how quickly you need to make it, selecting a funding option becomes a far smoother process. For example, a business looking to finance its latest product line may benefit more from product pre-sales than they would be taking out a £5,000 loan to cover it. If the accountant you’re working with agrees that early projections of your product sales look stable, you may be able to justify taking customers’ money in advance. However, without the right financial guidance, this may not be something you are able to determine yourself.
In extreme circumstances, scale-ups may even want to consider selling assets in order to continue their expansion. This may be because they are unable to secure another loan or are planning something much bigger than they’ve attempted before. Rather than selling off assets ad-hoc, a small business accountant can decide which sales make the most sense. Perhaps you have a company car that is rarely used or shares in another company that would be better placed in the one you’re expanding. In either scenario, you need to know that the decision you make is the right one. An accountant can provide you with the assurance your business needs and keep your next venture on track from start to finish.