The Growth Collective, delivered as part of the Wiltshire Fit for Growth programme, is designed to help businesses stay ahead in an ever-evolving market. Through a series of free workshops and webinars, we focus on driving success by embracing planned innovation and leveraging the latest in digital technology. Our goal is to empower Wiltshire business owners and managers to enhance their competitiveness, whether by streamlining operations or boosting growth through digital transformation. By staying ahead of the curve, your business can thrive and remain agile, even in challenging times.
As part of the Growth Collective we will be focusing on finance—a crucial area where many business owners feel that things will simply "sort themselves out." But financial management doesn’t have to be daunting, and it’s easier than ever with the right tools and approach.
Finance is Getting Simpler, But Smarter
With modern financial management software, business owners have unprecedented access to real-time data, enabling more informed decision-making. It’s important to distinguish between management information—the data you need to run your business profitably—and compliance issues, like VAT, PAYE, and Corporation Tax.
Software such as QuickBooks, Xero, and FreeAgent allow you to manage both seamlessly. These tools put valuable accounting data at your fingertips, ensuring compliance while giving you instant insight into your daily or weekly management figures.
Critical questions like:
Where is my money?
What do I owe, and what is owed to me?
What will my cash position be at the end of the week?
can now be answered quickly, giving you better control over working capital. Having clear visibility into your cash flow enables you to free up capital when needed for increased production or to reduce interest charges on overdrafts. This is especially valuable when you can track exactly where your money is tied up.
Asking the Big Strategic Questions
Once your financial management is in order, you can move on to the big questions that shape your business strategy:
Which of our products are the most profitable?
Which sales channels—wholesale, retail, or online—are performing best?
What are our biggest costs after labour?
How much are we wasting, and how can we improve efficiency?
These insights depend on the proper allocation of costs within your financial system, such as a well-structured chart of accounts. A tool like Xero, when paired with stock management systems like Unleashed, allows you to track stock levels and costs effectively. This helps with managing Bills of Materials (BoMs) and allows for better decision-making around pricing and profitability.
Planning, Borrowing, and Attracting Investment
Investors and banks are more likely to support a business that is well-managed, with a clear understanding of its financial position. Your business plan will need a profit and loss statement (P&L) and a cash flow forecast—both of which can be easily generated if you’re using robust management information systems.
Bringing processes like payroll and VAT management in-house with the right tools not only gives you more control but also reduces costs in the long term.
Join Us at The Growth Collective
As part of The Growth Collective programme, we’ll help you get the most out of your financial systems, guiding you through your unique circumstances and helping you ask the right questions. Whether it’s your accountant, bookkeeper, or software supplier, knowing what to ask is key to getting the answers you need.
Read more about The Growth Collective and sign up: Growth Collective | Fit For Growth (fit-for-growth.co.uk)