When it comes to financial planning, just remember, O.E.R.: Ownership, Education, Roll forward.

‘What businesses need to remember about their accounts and tax returns is that they own them, not the accountant’ says Lesley Ward of Baldwyn Ward Chartered Accountants and Tax Advisers.  ‘Whilst the accountant may help produce them, it is the business owner’s signature that goes on the tax return and accounts.  The accounts should form an integral part of the business.’

It is in a business owner’s interest to understand the numbers in their business.  ‘You should ask your accountant how the numbers are produced from the information you provide.  The more you understand the more in control of your business you will be’ says Lesley.

Conversely, you should have a day to day relationship with your accountant and should look to educate your accountant about your business.  The more your accountant understands, the more they can help you.

Once you understand the numbers, you can and should use them within the business to provide a plan as to where the business is going.

Look at where you are currently and “roll the numbers forward” to where you want to be e.g. sales for the last year were £100k, next year you want £150k.  Break the difference down into an action plan e.g. aim to get £60k more sales from widgets but sales of thingies will decrease £10k.  This will then give you an action plan which you can use to target people in the business and also to give the business itself a direction. 

The other thing to remember about a plan is that it will change over time! Don’t be afraid to revise your plan – you have to be prepared to do this if you are really going to use the plan in your business.

Remember, no one understands your business like you do, so make it your business to understand what your accountant is doing and how they do it!