We know you didn’t start your business because you love paperwork. You want to be able to focus on your products, your customers, and your dreams for the future. But here’s a little secret: those seemingly boring quality records? They’re the magic charm that can help turn those dreams into reality.
At Starfish, we’re all about getting to know you and your goals. Maybe you’re dreaming of a seaside holiday home, or perhaps you’re working towards a stress-free retirement. Whatever your vision, quality records play a crucial role in getting you there. So why are they so important.
1. They’re your business’s crystal ball
If you’ve ever felt like you need a crystal ball to help run your business then that probably means you don’t have a good handle on your business numbers. You need a clear picture of where your business stands to help you to figure out what’s coming next. When we sit down together to plan your path forward, accurate records help us see potential hurdles and opportunities. Want to take that two-month Chinese adventure? Good records will show us if your business can fund it and run smoothly while you’re cuddling pandas.
A budget and cashflow forecast might not set your world on fire, but trust us – they’re like a satnav for your business. Knowing you’re on the right track financially? That’s the kind of freedom that gives you the confidence to push forwards.
2. Never get stressed about taxes again
Nobody likes surprise tax bills (unless it’s a surprise refund!). Keeping quality records throughout the year means no last-minute scrambles or worries. You’ll have more time to focus on what really matters – like planning your next big move or simply enjoying a relaxed lifestyle. If your business finances are up to date then you can work out how much to put aside for tax – and earn interest by putting the money into a business savings account! This will vary from business to business but as a very rough rule of thumb putting aside 25% of your profit is a good starting point.
3. Demonstrate the value of your business
Thinking about retirement? Even if it’s years down the road, quality records are your secret weapon. They’ll help you to show off your business’s true value to potential buyers. Clean, detailed accounts will help to convince your future buyer that your business is well organised and well run. This isn’t just about numbers on a page; it’s about painting a picture of a business that’s too good to pass up.
The earlier we start prepping your records for a potential sale, the better your chances of hitting the jackpot when it’s time to step away. We’re talking about documenting processes, streamlining operations, and highlighting growth potential – all reflected in those quality records. When that dream buyer comes along, your records will do the talking, potentially adding thousands (or more!) to your sale price. And that extra cash? It could mean the difference between a good retirement and a great one, filled with all those adventures you’ve been dreaming about.
4. A lifeline during an HMRC investigation
Let’s face it – the words “HMRC investigation” can send a shiver down any business owner’s spine. But if your records are up to date and squeaky clean, you’ve got nothing to fear. If the taxman comes knocking, your well-maintained books are like a suit of armour. You will be able to quickly provide any information HMRC requests, speeding up the process and minimising disruption to your business.
5. Make smart decisions based on up to date information
Want to expand? Invest in new equipment? Take on a new member of the team? If you don’t have quality records then you are making the decision based on gut instinct and optimism. Your financial records are there to provide the insights you need to make confident decisions that align with your personal and business goals.
But it’s not just about the big decisions. Your financial records help you to understand the day-to-day performance of your business too. They can reveal which products are flying off the shelves, which services are your secret money-makers, and even which times of year you might need to tighten the purse strings. It’s like having a superpower that lets you see the hidden patterns in your business. When you understand your numbers, you can tweak, adjust, and fine-tune your business to make it work as hard for you as possible. After all, when you know exactly where you stand, you can make every decision count – big or small.
Now, we know keeping pristine records isn’t everyone’s cup of tea. That’s where we come in! At Starfish, we’re not just about crunching numbers. We’re here to understand your dreams, big and small, and help you use your business as a vehicle to achieve them.
Maintaining up to date records is a vital part of that journey, but that burden doesn’t have to fall on you. Let’s work together to create a system that keeps your records as they should be, freeing you up to do what you do best.
Remember, no dream is too big or too small to share with us. Whether it’s a new car or a new continent you want to explore, quality records can help pave the way. Book a friendly chat with us. We’ll work together to make sure your records aren’t just tidy – they’re actively supporting your goals, whatever they may be. From big dreams to everyday wins, we’ll help your business stay on track.
