Blog Layout

What percentage of business fail?

It's usually the financial side, that usually lets the business down. There are 5 main reasons, why the majority of businesses fail:

1. Not underestimating the importance of keeping records and looking after accounts

Having a fantastic business idea and enthusiasm to achieve goals is one thing, but keeping your accounts in check is another entirely.

If you already got your business up and running without any accounting skills, keep in mind that things can get complicated quickly and it may be more difficult for you to grow your business without the inside knowledge.

Whilst you should have a grasp on the fundamentals of bookkeeping and keeping your receipts, a good accountant or bookkeeper will help you see what is coming, where you can make savings, and when to invest and grow. Not to mention being tax efficient.

2. Not having a business plan

A business plan is a bit like a map to your desired destination. It includes goals, budget, marketing plan, sales plan, and more.

Every business needs a plan on how to achieve its goals. Think of it as a map. If you don't know where you're going, how can you get there?

It is a good idea to set a business plan for 12 months, review it regularly, change and adapt to changes in the market and plan your journey and company objectives. See how to achieve them and how long it takes you to.

3. Cash flow problems.

A lot of small businesses make the mistake of not looking at their cash flow regularly. Just because you make sales, doesn't mean you will have money in your bank account and make a profit.

I know it sounds bonkers, but it just doesn't.

Starting a business is a financial risk and it's really important to find a way to get money into your account faster than they go out!

An accountant can help you find ways to improve your cash flow, and help with planning and managing late payments, without which the future of your business might get into trouble.

4. Not valuing their business figures

The majority of businesses fail because they don't value or understand their figures.

Working ON your business is as important as working IN your business. Knowing what works, and what doesn't and being three steps ahead is paramount to a successful business.

If you don't understand it or it's getting too much, get an accountant. Fresh pair of eyes will be invaluable in saving your money and precious time.

Also, accountancy fees are an allowable expense, which in effect will lower your tax liability.

5. There is no continuity plan

Continuity or a "disaster" plan will allow you to trade and survive. Having one is essential to having a healthy business and surviving the worst-case scenario.

It is no wonder so many businesses go under because without the above they can't plan for anything, because they are just surviving day-to-day, without any proper plan for the future.

You should be saving for your tax as you go, hence you need to do your bookkeeping regularly and ideally have a little pot of extra savings to tie you over the rough patch. Again, you need to have a plan, good cash flow, do your bookkeeping regularly, and understand your figures to be able to do that.

Fortunately, we can help you with all of this. We are a virtual accountancy practice based in Telford and can help you with your bookkeeping, explain all the terms and figures, mentor you and cheer for your every success.

< Older Post

Newer Post >

Accountacy Services in Telford | Brush Up Accounting | Female Owned Accountants in Shropshire

How to Stay on Top of Your Small Business Transactions | Accountant Telford | Bookkeeping Telford

How to Stay on Top of Your Small Business Transactions - Brush-Up Accounting Telford, Shropshire

by Jana Ward • 7 November 2023

How to Stay on Top of Your Small Business Transactions - small business advice for sole traders by Brush Up Accounting, Telford, Shropshire

Second payment on account | Accountant Telford | Bookkeeping Telford | Accountant for artists

Second payment on account: Your guide to the July deadline | Accountancy Services in Telford | Female Account Telford | Brush Up Accounting Ltd

by Jana Ward • 14 July 2023

Second payment on account - by Jana Ward - Brush Up Accounting in Telford, Shropshire

Accounts in Telford | Brush Up Accounting Ltd | Female Accountant in Shropshire

Navigating Small Business Expenses | Accoutants in Telford | Brush Up Accounting Ltd

by Jana Ward • 28 June 2023

How to navigate small business expenses for the self employed - by Jana Ward - Brush Up Accounting Telford, Shropshire.

A Quick Guide to Financing Your Start-up Business

by Jana Ward • 5 June 2023

Be smart about financing your start-up business by Jana Ward, Brush Up Accounting in Telford, Shropshire.

How to pay yourself as a director of a limited company

The most tax efficient directors salary for 2023

by Jana Ward • 2 May 2023

How to pay yourself as a director of a limited company by Jana Ward, Brush Up Accounting in Telford, Shropshire.

5 simple steps to increase sales by Brush Up Accounting Telford

Get More Customers and Close More Deals: 5 Simple Steps to Increasing Sales

by Jana Ward • 9 March 2023

5 simple steps to increase sales by Brush Up Accounting, Telford, Shropshire.

5 mistakes to avoid when scaling your small business

by Jana Ward • 16 January 2023

5 mistakes to avoid when scaling your small business by Jana Ward, Brush Up Accounting, Telford, Shropshire.

How to keep your business profitable during a recession

by Jana Ward • 2 January 2023

How to keep your business profitable during a recession by Brush Up Accounting Telford, Shropshire.

How to fill in self assessment | Accountants in Telford | Brush Up Accounting Shropshire

How to fill in a Self Assessment tax return

by Jana Ward | Telford Accountancy Services | Brush Up Accounting • 19 December 2022

How to fill in a Self Assessment tax return. If you are self-employed, you probably know you must declare your earnings yearly and pay tax. If you are unsure how to fill in your Self Assessment tax return, follow our guide. Need help? Contact us at Brush Up AccountingLtd, Telford Accountancy Services.

How can growth mindset help your small business

by Jana Ward • 5 December 2022

How can growth mindset help your small business by Jana Ward, Brush Up Accounting, Telford, Shropshire

Testimonials

Rea Moores Creates

Starting up my own business I had no idea how much would be involved in preparing the tax at the end of the tax year and how much time bookkeeping would take. Fortunately Jana was at hand to help me. She guided me through all the steps needed for her to submit the documents to the tax office, answered all the questions I asked, and put me at ease. I would recommend brush up accounting to anyone that needed this service.

QualClean Ltd

I have engaged Jana as the permanent accountant for QualClean Ltd as my accountant of 7 years advised me, he was retiring.
In the last 12-18 months I have become a little disorganised due to workload, illness and several other external factors. This has resulted in me not staying on top of my accounting, bookkeeping and invoice payment chasing.

In less than 2 months, Jana has very efficiently organised me and has set me up with a whole new system to aid my efficiency. Moreover she has been really proactive in pointing out issues in my bookkeeping and most importantly, my invoice chasing. This has resulted in recovering monies that I had no idea I was missing!

I thank Jana for her highly fastidious approach and care and I have no hesitation in recommending her to colleagues and friends.

Nikki Ayton

Brush Up Accounting was recommended to me by a mutual friend and Jana has been like a breath of fresh air. I needed someone approachable, professional and experienced and I got all three.

Jana was excellent at communicating with me and she has always got back to me within 24 hours (if not sooner). She has made an onerous task a lot simpler by explaining the process step by step.

I highly recommend working with Brush Up Accounting.

How we work

⭐ We'll set up up on Xero, Brightpay and other essential software.

⭐ We offer fixed monthly fees, reviewed quarterly, with options for video meetings and screen sharing. If you’re

local to Telford, we are happy to meet you in person too.

⭐ We will handle your bookkeeping, prepare detailed reports, and have an in person or a Zoom meeting to go

over your profits together.

⭐ We will discuss how much money you need to save for your tax, how much VAT you need to pay, ensure you

fully understand all of your finances, and answer any questions you may have.

⭐ With your account accounts done monthly, you'll have a clear and transparent view of your finances. This

will help you to take more money home, be in a safe financial position, and plan for a more profitable future.

⭐ We're well connected and can introduce you to other professionals to help you achieve your goals.

How we work

⭐ We'll set up up on Xero, Brightpay and other essential software.

⭐ We offer fixed monthly fees, reviewed quarterly, with options for video meetings and screen sharing. If you’re local to Telford, we are happy to meet you in person too.

⭐ We will handle your bookkeeping, prepare detailed reports, and have an in person or a Zoom to go over your profits together.

⭐ We will discuss how much money you need to save for your tax, how much VAT you need to pay, ensure you fully understand all of your finances, and answer any questions you may have.

⭐ With your accounts done monthly, you'll have a clear and transparent view of your finances. This will help you to take more money home, be in a safe financial position, and plan for a more profitable future.

⭐ We're well connected and can introduce you to other professionals to help you achieve your goals.