New businesses ‘must seek outside financial advice’

Start-up businesses will always benefit from a thorough review of accounts once a quarter and having an independent financial expert review their books at least once a year, according to Business Link.

Claire Savidge, a business advisor from the government’s business advisory service Business Link, says that regular financial reviews are particularly important for small and growing businesses.

Even ‘financial whizzes’ who might not need a quarterly review should always check their accounts at least every six months ‘and not wait until the accountant says, ‘here’s your accounts, you made a loss this year”’, she says.

Outside advisors can ensure that small business owners are aware of any potential tax issues which may arise and can “make sure they are heading in the right direction”.

Savidge recommends that businesses look to specialist financial advisors who have knowledge about their particular sector.

‘The better the accountant knows and understands your business and knows your aspirations, the more that they can help you,’ she advises.

According to a recent review of 600 companies and 1,250 business advisors and accountants by the Professional Oversight Board, a proportion directors were unclear about the financial advice options open to them.

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