When working with an accountant (especially if you’ve not engaged one before), it’s easy to accept bang-on-time figures and deadline-pushing payments as the norm. But this bare-minimum approach lacks anticipation for the future and can be a major barrier to progression. On the other hand, getting ahead of the game and looking beyond the present can provide refreshing transparency.
Here, we explore what forward-thinking accounting looks like, why it’s beneficial to your day-to-day functions, and how it can pave the way for considerable business growth.
Accounting with foresight
Swapping a reactive approach for a proactive one requires a mindset that works in front of the figures, not behind them. From base-level accounting requirements to management accounts, forward-thinking actions and behaviours could include:
- Making VAT payments early
- Ensuring other industry-related financial payments are organised early, e.g. CIS payments
- Delivering quarterly and annual figures ahead of schedule
- Staying on top of financial KPIs, e.g. customer acquisition cost, customer lifetime value, burn rate, gross profit margin, and conversion rate
- Considering the future impact that every action has on the business
While this may not seem like rocket science, it’s easy to become comfortable with accountancy that coasts along. But if growth is your aim, you may find yourself stuck in a stalemate when you could be striving forwards.
Grounds for growth
Early growth is essential for new businesses and requires going above and beyond in all aspects – including accounting. Putting the future first, predicting outcomes and staying ahead of the numbers offers clarity and calm for business owners, and it also makes room for better long-term decisions to be made.
More specifically, managing areas such as overheads, turnover and debt becomes much easier and allows you to responsibly scale. Without a clear future vision, it can become more difficult to know when you’re spending too much – or too little – and could lead to stunted growth.
Ultimately, when you spend less time worrying about present financial deadlines and payments, you have more time to dedicate to future planning. When carried out correctly, this kind of forward-thinking accounting can be truly transformative for your business.
At Nabarro Poole, we’ve been putting business growth at the forefront of our clients’ interests for years. With an honest yet friendly approach to numbers and a constant eye on the future, we go the extra mile when it comes to management accounts, budgeting and forecasting, and various other accounting services.
To learn more, don’t hesitate to get in touch with our team. We’d be more than happy to talk about your business needs.