Discover how business advisory services are transforming the role of accountants, with practical advice from Chris Worden and guest Nicola Barnet.
- Business advisory goes beyond compliance
- Mindset and habits drive business success
- Frameworks help streamline operations
- Clear client boundaries reduce overwhelm
- Awareness of finances is key to growth
Accountants: More Than Just Numbers
Chris Worden discusses with Nicola Barnet how the accountant's role is evolving. No longer just about tax and compliance, modern accountants offer strategic advice, helping business owners understand their numbers and make informed decisions.
The Power of Mindset and Habits
Nicola shares how changing her mindset, inspired by a book on quitting smoking, led her to develop an efficiency and profit framework. She emphasises that business owners often need to break old habits and adopt new ways of thinking to achieve growth.
Frameworks for Efficiency and Profit
Nicola's framework focuses on three milestones: analyse, optimise, and achieve. This structured approach helps business owners gain awareness, implement changes, and reach their goals. Chris Worden highlights the importance of clarity and structure in overcoming business challenges.
Setting Boundaries and Managing Overwhelm
Both Chris and Nicola agree that setting boundaries with clients and within your own schedule is crucial. Techniques like 'golden hours' and limiting email time can free up mental space and reduce stress.
Key Financial Metrics to Track
- Gross margin: Understand your true profit on sales
- Debtors: Stay on top of who owes you money
- Overheads: Regularly review expenses for efficiency
Common Pitfalls: Overdrawn Director's Loan Accounts
Chris Worden and Nicola explain the risks of overdrawn director's loan accounts, stressing the need for clear management information and awareness of personal vs business finances.
Key Takeaways
- Business advisory adds real value beyond compliance
- Mindset shifts and habits are vital for growth
- Frameworks and structure help achieve business goals
- Set clear boundaries to avoid overwhelm
- Track key financial metrics monthly
- Seek advice early to avoid costly mistakes
FAQs
- What is the difference between business advisory and traditional accountancy?
- Business advisory focuses on strategy, growth, and efficiency, while traditional accountancy centres on compliance and tax.
- Why is mindset important for business owners?
- A positive mindset helps break unhelpful habits and drives business transformation.
- What are the key financial metrics every business should track?
- Gross margin, debtors, and overheads are essential for understanding business health.
- How can I avoid overwhelm as a business owner?
- Set clear boundaries, use frameworks, and schedule focused work periods to manage workload.
- What are the risks of an overdrawn director's loan account?
- It can lead to tax issues and personal liability if not managed properly.
Ready to take control of your business finances? Contact us for tailored advice and support.
