Elevate Profit is not just about helping you make an accounting profit, it's also about helping you access that profit by getting your cash-flow under control in a way that means your profits are accessible when you need them. There's no point making and paying tax on 'profits' if you are not able to enjoy them yourself because of poor cash-flow management.
The solution is actually very simple: budgeting!
Budgeting can mean all sorts of things to different people. But at Elevate Profit, budgeting means knowing what money you have available for different purposes, setting the figure, and never breaking those figures.
These budgets shouldn't be guesses. They should be calculated based on your financial data and the decisions should then be made for you on a day-to-day basis. The very first step to creating perfect budgets, is to work our your margins.
You can read a guide about how to work your margins out here.
Once you've established your margins, the rest of your cash-flow solutions are super simple:
For example, if £10,000 comes into your business, that £10k is immediately broken down into your margins and set aside for those purposes. If your materials margin is 40%, you immediately set aside £4,000 for materials.
Do this for every piece of cash that comes into the business.
By doing it this way, you will always know what you have available for a specific spend. Want to buy a new whacker plate rather than rent one? Do your spending budgets allow it? If they do, great, go ahead. But if you don't have the cash set aside for this purpose, looks like it's rental time until you do!
By working in this way, it ensures you will always have cash available for when you need it.
We have a fully managed service which can handle this all for you.
