In this guide, you’ll learn the key considerations, work through a practical example and find useful next steps. Take your time and use the free worksheets to put ideas into practice.
What you’ll take away
- Separate personal and business finances
- Forecast cash in and cash out
- Set aside money for tax
Separate personal and business finances
Keep clear records of business income and costs. A separate business account can make tracking easier; requirements vary by business structure.
Forecast cash in and cash out
For each month, estimate customer payments and when expenses actually fall due, not just when invoices are issued.
Set aside money for tax
Understand your tax and National Insurance obligations. Check current HMRC guidance and deadlines rather than relying on a fixed percentage.
Price for sustainability
Include materials, time, overheads, payment fees, tax considerations and a margin for unexpected costs.
Plan for quieter months
Review whether you can cover essential business and household spending if sales fall or invoices are paid late.
Keep this checklist handy
- Start-up costs and monthly overheads
- Expected sales and payment terms
- A simple 12-month cash flow forecast
- Insurance and business registration questions
Putting your learning into practice
Use the guidance above to identify the information you need and the questions to investigate. Consider:
- Separate personal and business finances.
- Forecast cash in and cash out.
- Set aside money for tax.
- Price for sustainability.
This is general financial education, not a personal recommendation, an assessment of suitability or an invitation to buy or arrange a financial product. Check current official information and obtain appropriate professional advice for individual circumstances.
Keep learning
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