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How to Set Financial Goals for Your Business

September 3, 2021 4:02 am

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A crucial step to financial success for your business is setting financial goals that you are confident in knowing how to reach. Hiring an accountant can be very helpful with meeting these goals and following the strategies set. For Cheltenham Accountants, look up Randall and Payne Cheltenham based accountants. I will help you with setting the financial goals for your business with the following tips.

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Firstly, just as if you were setting any other goal, use the SMART acronym to make goals that you are more likely to reach. The five important attributes, as stated in the acronym, to setting good goals are that they are specific, measurable, achievable, realistic, and time bound. Whenever you are setting goals, use this system.

Next, make sure to define exactly what you actually intend to sell, and who your target customers are. This will make sure that your goals are as specific as possible.

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A good example of a financial goal is to generate more revenue by increasing sales volumes. Highlight what you will do in order to sell more each week or month to give yourself short-term goals that are time bound. This will make you more motivated and able to regularly assess whether you are on track to achieving your goal.

Lastly, create a written plan stating how you will know if you are on track. Forecasting your business’ cash flow for the next twelve months is a good goal that forces you to look thoroughly at your business’ future and how you will be prepared for the foreseeable slumps and issues with your business’ finances. Using an accountant and specialist business advisor can really help with this.

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