On the latest edition of Get Radio’s Business Brunch broadcast, Saffery’s Audit Partner, Luke Hanratty emphasises the necessity for owner-managed businesses to have a firm grasp of their finances. He also sheds light on the audit process, discussing essential questions that must be addressed and highlighting common pitfalls for businesses.
Luke further explores several critical topics including:
The necessity of audits for both smaller businesses and larger companies.
The importance of focusing on profit rather than turnover for successful business management.
The significance of understanding cash flow, both in the short and long term, and the risks businesses face when they lack this understanding, which can jeopardise their ability to meet financial obligations.
The hazards associated with rapid growth, particularly the risks of overtrading and depleting cash reserves due to increased investment demands to satisfy customer needs.
The value of maintaining three distinct budgets: a baseline budget, an optimistic budget, and a contingency budget for challenging times. Luke notes, “it’s about being realistic and having an alternative plan in place so if things do go wrong, you know what levers you can pull to ensure your business doesn’t reach the end of the road.”
Additionally, he shares why he chose “Karma Chameleon” by Culture Club as his featured song.
To discover more insights and Luke’s essential takeaway tip for businesses, tune in to the Get Radio’s Business Brunch broadcast at: https://www.getradio.co.uk/podcast/week-187-the-importance-of-owner-managed-businesses-knowing-their-numbers-the-business-brunch-podcast
