Accounting might not be the reason you started your business, but it plays a big part in whether you keep it.

This isn’t about turning you into an accountant. It’s about helping you feel more confident in the numbers so you can make better decisions, sleep better at night, and run your business from a place of strength, without stressing out.

Whether you’re just starting out or growing fast, the 10 essentials below will help you build a better financial home for your business, and improve your personal financial situation.

1. Cash flow is king.

Profit matters, but cash flow keeps the lights on. You can have a profitable business and still run out of money. It’s surprisingly common.

Make time every month (or week, depending on your business model) to look at:

• Cash coming in (sales, client payments)
• Cash going out (rent, salaries, subscriptions)
• Timing of both

Forecasting even 3 months ahead can save you from making panicked decisions. If you’re always cutting it close, the problem usually isn’t volume, it’s timing.

2. You’re responsible for everything whether you understand it or not.

HMRC doesn’t accept “I didn’t know”, “I forgot”, or “I didn’t understand”.

Even if you’ve hired a bookkeeper or accountant, the legal responsibility for what gets submitted falls on you as the business owner.

That doesn’t mean you have to do it all yourself but you do need to understand what’s being submitted in your name and on your behalf.

So:

• Ask questions
• Read the reports
• Get explanations in plain English

If your accountant makes you feel stupid for asking, they’re not the right fit for you.

3. Bookkeeping isn’t ‘unnecessary admin’ it’s the foundation for your decision making.

As the saying goes: “rubbish in, rubbish out”. The outputs you can generate are only as good as the inputs you make.

Bookkeeping isn’t just about keeping HMRC happy and complying with the law.

Done right, it’s how you:

• Know if your business is actually making money
• Decide if you can hire that new person
• Spot when something’s gone wrong

If your books are months behind, filled with guesswork, or riddled with errors, it’s like driving with your eyes closed. You might be fine for a bit, but it isn’t going to last forever.

4. Don’t outsource your understanding.

Outsourcing tasks? Great!

Outsourcing thinking? Not so great! Possibly even dangerous.

Your accountant or finance team can handle the detail. But you need a high level understanding on the story the numbers are telling you.

We often hear clients say:

“I don’t need to understand the accounting, I’ve hired someone for that.”

That’s like saying you don’t need to understand your product because you’ve hired someone to build it.

Understanding builds trust and knowledge, and both of these build better decisions.

5. Your tax bill is not a surprise (or at least it shouldn’t be).

Tax is predictable if your accounts are up to date.

Every year, too many business owners are blindsided by a big corporation tax bill, VAT deadline, or personal tax payment. It often leads to fire-fighting, borrowing, or even worse: burying your head in the sand and hoping it will go away!

You should keep a rolling forecast of your expected tax liabilities, and put money aside for them as you go. A good accountant will flag liabilities early and help you prepare, so that there’s no last minute panic.

6. Accounting software is a tool, not a solution.

Xero, FreeAgent they’re brilliant tools. But they don’t make you a bookkeeper. And they definitely don’t think for you.

ChatGPT and AI solutions may hold many answers, and see many patterns, but they do not see them all or understand everything about human communication.

Both software and AI is only as good as what gets put into it.

We’ve seen too many businesses trust their reports blindly, only to discover much later that there have been duplicate entries, miscategorised expenses, or missing income.

Use software and tools, but understand the outputs and check your numbers inside out. If you aren’t sure, get a professional to help you.

7. Margins matter more than revenue.

Top line is for vanity, bottom line is for sanity. Margins are the early warning system.

If your gross profit margin is slipping, you’re either:

• Spending more to deliver your service
• Charging less than you should be
• Or both

Don’t just track sales. Track margins. They show you what’s working and what’s quietly draining wealth out of your business.

8. Don’t confuse being busy with being profitable.

It’s easy to think that because you’re working flat-out, things must be going well.

But busyness does not always equal good business.

If your overheads are growing faster than your income, or your time is being eaten up by low-value clients, you could be working harder and earning less.

Accounting helps you spot where your time and money are going. Without it, you’re just guessing and ‘running in the dark’.

9. Financial reports aren’t just for your accountant.

Profit & loss. Balance sheet. Cash flow statement.

You don’t need to love them. But you do need to learn from them.

These 3 statements make up the core of your business, its financial performance, and position at a point in time.

Ask your accountant to walk you through your numbers quarterly. Not just what they are, but what they mean.

Example: If your balance sheet shows you’ve got more receivables than cash, you might be profitable on paper but struggling with cash flow and liquidity.

When you understand the story, you can plan better for what’s going to be in the next chapter.

10. Your finances need a home that is safe and stable. Not on fire constantly, needing to be put out.

If you only look at your numbers when something’s on fire, you’re living in constant survival mode, always worrying something is wrong or going to go wrong.

Your business deserves better. And so do you.

We often say: finances need a home. A place where they’re looked after, organised, and reviewed regularly before problems start.

That might mean hiring someone to help. It might mean better systems. It might just mean booking an hour in your calendar each month.

But whatever it is, it needs to be a non-negotiable consistent habit. Because solid financial habits don’t just protect your business. They power it and drive it forward.

You don’t need to be an accountant. But you do need to be financially aware.

Understanding these 10 points will help you stay compliant, and:

• Run your business with more confidence
• Plan better, faster, and smarter
• Spot problems before they grow
• Feel more in control of your future

Ultimately they’ll help your business feel like a better place.

It won’t be as chaotic, and everything will feel calmer. Just like you feel when you’re at home, or return after a stressful day at work. It will support you, and aid your rest and recovery, helping you move forward in life.

Want support from a team who makes accounting feel like home?

At RedBrick, we help business owners like you feel confident, supported, and secure in their finances without the jargon, judgement, or endless spreadsheets. For a better home for your business finances, email: hello@redbrickaccounting.com