How to calculate the value of your business (so you can protect it)

At Tyrrell and Company, we’ve worked on valuations for many of our clients. It’s an important part of planning a growth strategy or the end sale of the business, so getting as accurate a valuation as possible is always the end aim.

And, in our experience, there are four basic criteria that have an impact on the end value of a business

Turning around a struggling business: and making it a profitable one

Too many businesses survive with one eye on their bank balance and another on an ever-growing pile of bills to pay. They survive, day to day, but there’s no stability, no profit and definitely no foundation for growth. And this kind of short-termism can be fatal for a number of reasons:

Setting cash collection targets for your business

Having targets in place is a great way to motivate your finance team and give them a clear goal to aim for. Using the reporting capabilities of Xero, you can pull together numbers for the cash you collect from each customer on a monthly basis. And with these numbers in the bag, it’s easy to set achievable targets for future cash collection, based on the empirical data you already have in your accounts.

Choose Xero: go for Netflix, not DVDs

Choosing the right platform for your business’s finance system is a big decision. Get it wrong and you could end up with accounting software that’s quickly out of date, doesn’t have sufficient support and, ultimately, ends up throwing a whole host of hurdles in your path.

But get it right and you can streamline your processes, improve your view of your business numbers and get a vastly improved sense of your business position and your underlying profitability.

That’s why Xero is the choice for the informed small business owner.

Receipt Bank – Transforming your bookkeeping and business advice

We’re always keen to help our clients become more efficient, understanding how cutting down on administrative or business processes can save vital time and resources.

Part of this drive for efficiency is our partnership with the amazing people at Receipt Bank – an integrated solution and an essential part of keeping on top of your company finances.