Today (August 14) is National Financial Awareness Day, an annual celebration to encourage people across the UK to look at their financial health and improve their habits of budgeting, saving, debt management and planning.
For business owners, it provides a useful prompt to review how well they understand their finances and whether they have the information and habits in place to make confident, informed decisions.
Government figures show cash flow issues remain a significant factor in small business closure, so for this month’s Lancashire Support Spotlight, we asked three of our Boost & Co partners for their top tips to help new Lancashire businesses build strong financial foundations.
Chris Brown, founder and managing director, Brown & Co
Financial awareness is not just about keeping score, it's about building resilience
One of the most important habits a new business can develop is understanding and managing cash flow from day one. It's essential to know what money is coming in, when it is due, and what commitments are due in the weeks and months ahead.
A regular cash flow forecast can identify potential shortfalls early, giving you time to act rather than react to a crisis. Business owners should invoice promptly, set clear payment terms, and maintain consistent credit control, as late payments can quickly pressure working capital.
It’s also important to understand your key financial numbers beyond simply checking the bank balance. Knowing your profit margins, overhead costs and break-even point supports better decisions and helps you invest confidently in growth opportunities.
Don't be afraid to seek professional financial advice early. The right support can help avoid costly mistakes, improve planning and provide valuable insight as your business develops. Financial awareness is not just about keeping score; it's about building resilience, making informed decisions and creating a sustainable foundation for long-term success."
Rosie Cooper, director in PM+M’s Cloud Accounting team
Build your cash flow buffer before you need it
For Lancashire's start-ups, the single most valuable financial habit isn't chasing growth, it's protecting cash flow. Too many promising new businesses fail not because they're unprofitable, but because they run out of cash at the wrong moment due to a late-paying client, unexpected tax bill, or a slow month that stretches into three.
The fix is straightforward but often overlooked: build a cash buffer covering at least three months of essential outgoings, and keep it separate from your day-to-day trading account so it's not accidentally spent. Alongside this, forecast your cash position weekly, not just monthly. A simple spreadsheet tracking money in and money out gives you early warning of trouble long before your bank balance does – and as the business grows this can be developed into software to give you better insight.
Equally important is invoicing discipline. Send invoices promptly, set clear payment terms, and don't be afraid to chase late payers. Cash sitting in someone else's account is cash you can't use to pay staff, suppliers, or yourself.
Financial resilience, not just ambition, is what carries start-ups through their fragile first years.
Suzie Brooks, director, Brooks Accountants
Know your numbers from day one
One of the biggest financial mistakes I see new business owners make is assuming that because someone else looks after their accounts, they don’t need to understand them. You absolutely should outsource the things you don’t need to do yourself, but don’t outsource understanding your business.
From day one, start to learn about your numbers:
You should also start putting money aside for tax from the outset. Tax bills shouldn’t be nasty surprises, treat that money as already spoken for, rather than part of your available cash, then build a simple habit of looking at your numbers regularly, not just when your accountant produces your year-end accounts.
You don’t need complicated spreadsheets or financial jargon. You just need to understand what your numbers are telling you. Remember, your finances shouldn’t simply record what happened last year and used properly, they can help you decide what happens next.
There is a range of support available in Lancashire to help new businesses strengthen their financial awareness and build good financial habits. Businesses can also access private sector support from Boost & Co members; you can visit our directory here.
If you want to improve your financial awareness and don’t know where to start, speak to Boost’s Business Support Helpdesk here.
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