Take a holistic view of your business

Take a holistic view of your business

As a business owner, there will be times when you come up against a financial obstacle that’s holding your business back.

Whether it’s an unexpected tax bill, a problem with last year’s accounts or a sudden cash-flow issue, that’s the time that many people pick up the phone and ask their accountant to come riding in to the rescue (a white stallion is optional, we believe).

But when you deal only with the one problem in isolation, you don’t get to see the full picture of what’s going on in your business.

So if you really do want to resolve your issue and move your company forwards, it’s important to talk to an accountant who takes a holistic view of you and your business – looking at the whole situation, not just the separate parts.

Don’t resolve your issues in isolation

Too often, the question raised by a small business client – and the answer given by the accountant – deals solely with one specific issue in the company, without looking at the wider implications.

So, if the problem is an unexpected tax bill, it’s no use just borrowing money to fill the cash-flow gap. That’s a short-term fix – it looks at the problem, but not the wider reasons for that problem having arisen.

What’s needed is a review of your business’ tax liabilities, a revised tax planning strategy and a separate bank account into which you can pay regular cash instalments – so there’s always a pool of money ready to settle any tax bill.

Listen to input from your advisers

Another common issue is a client who knows what they want, but refuses to listen to any additional input or guidance from their adviser.

For example, if you contact your accountant to find out the tax charge on selling a particular property, it’s important to be open to widening that discussion out.

  • What are the wider implications of this house sale?
  • Could it have inheritance tax implications for your family?
  • Is this property linked to the business, and what would the sale mean to your profits or current assets?
  • Are there ways to redistribute any income from the sale in a more tax efficient way?

If you don’t let your accountant walk you through these considerations, it’s very likely that you’ll end up paying more in tax than you truly need to.

Compare that to someone who is looking to move home and is doing the proper research. They will look at details of the local environment, the quality of school provision and public transport journey times etc. to get a proper picture of the locality. These details have nothing to do with the actual property, but they are very much part of the decision-making process when choosing the best place to move to.

Be holistic and see the bigger picture

Like the person who researches everything about the locality around their proposed new home, you need to consider every business decision with the with the same all-encompassing holistic viewpoint.

Instead of standing in the middle of the business and looking inwards, try to step back and look at the business from the outside. Consider every aspect of your business model, and the potential impact (both positive and negative) of making any financial changes, or putting any resolutions in place.

It’s about scenario-planning and strategising each and every solution and decision – and by doing so, helping your whole business to improve and succeed.

A holistic overview of your whole business

At Caplan Associates, we always start by analysing your business as a whole.

When we take you on as a new client, we will carry out a holistic review and prepare a one-page balance sheet – showing not only your business finances but your personal financial situation as well.

By looking at the whole of your wealth (both business and personal) you get a much-improved overall view of where you are now, as well as a better overview of where you want to go next. And that means we’re well prepared to help you meet those business goals and push forward at the right speed.

Of course, your situation will evolve and change over time. So we review your financial and business health on a regular basis – so you’ve always got the best holistic view of your company, finances and personal wealth.

Get in touch to have a chat about getting the best possible holistic view of your business and personal situation.