Business Finance Accounting
Business finance accounting deals with managing your business's funds in a way that optimises profit while ensuring the security of assets and business growth. If your business is already flourishing, a professional in business finance management can open up financial doors and investment opportunities that may otherwise be overlooked while overseeing the security of business funds. However, if you are just starting up your business, there will often be a need for business startup finance advice and assistance.
Financing a new business
Gaining capital for your new business can be difficult, but there are many avenues open to a keen future business owner. The source of your startup finance or business capital finance will depend on the size of your business and what type of business you want to build. Some business finance options may include a bank overdraft or loan, a mortgage or equity release, credit cards, or even business grants. It is worth seeking out and exploring a range of business finance options to find the right fit for your business.
To finance a business you will need an idea of what your business will cost to set up and run as well as your projected profit. However, it is important to remember to do your finance plan first. This will include such essential items as:
- Costs of establishing your business – all set up costs, including registering and licences as well as equipment, resources and some working capital
- A cash flow projection that looks at the running costs of your proposed business against any earnings over a projected period of 12 months or more
- A balance sheet forecast – a look at your bottom line, including assets and liabilities after a 12 month period. This will outline the future health of your business
- A business plan – your finance plan should be just a part of your overall business plan
Business acquisition financing
Usually if you decide to expand your company by taking over or acquiring another business then you will need some extra capital to cover the buyout costs as well as any merger costs that may come with the combining of two different business structures. There are various loans that can cover the flexible needs of your business at this time. A cash flow analysis and review of business objectives may be needed during this process and having expert help can ensure a smooth ride during such a financially turbulent period.
Business lines of credit
Some business owners use personal lines of credit when starting up their business in order to finance the set up costs. After the business has settled down however, it can be beneficial to apply for a business line of credit instead. By doing this you will be taking yourself, as the business owner, out of the financial equation and thereby protecting your personal assets and credit rating. It's important to build a strong credit history for your business if you are interested in taking this financial road as lenders will not be interested in a risky investment.
Business asset finance
Established and newly established businesses often require the purchase of new equipment or vehicles. It is possible to obtain an asset loan that will cover any items of equipment that assist you in generating income for your business. Asset or equipment loans are backed by your own business's assets and therefore often offer more favourable terms than other types of loans. Your accountant of financial advisor would be the best person to consult when considering this type of finance.
What Gateway can offer
Here at Gateway we have experts in the field of financial accounting with over 20 years experience in asset finance, business startup, financial planning, setting up business lines of credit and business acquisitions. Our professionals can sit down with you to talk about all your financial accounting needs. For an obligation-free meeting with one of our partners call us on 07 3226 1800 or complete our online contact form.