Once again Director magazine has highlighted a key area of business know-how: finance.

One in three small businesses fold before their third birthday – and all too often that failure is due to poor financial management.

New businesses should accept this as a real danger, and learn from the mistakes of these other businesses. If, as the article says, most of us don’t have the financial knowledge we need to run a business, it’s time to take action.

Kaleidoscope is now three and a half years old and thriving – but there have certainly been times when I’m not on top of my finances – and it’s an unpleasant, out-of-control feeling.

It should be unpleasant, because finance is absolutely key to success in business.

When you start up you have to wear all the hats, and finance is one of them – however, you might not have had anything to do with finance before, so you’re just covering the basics. Then, when you become busier, you lose that time – and that’s when you really need to be handing over to a professional accountant or bookkeeper.

An accountant is especially good for a growing business. As well as keeping your books, they can run a report at any time on your cashflow, profit and loss and margins. They are a significant business expense – but growing businesses can't afford to do without that level of financial planning and peace of mind.

At Kaleidoscope Virtual Assistant Services, we try to give our new clients the ‘phew’ factor – the relief that comes from knowing they no longer need to be bogged down by the tasks they hate. Taking on a new accountant or bookkeeper should give the same feeling of relief.

As ever, it comes down to the art of delegation.

Here are four top tips for bringing a good finance professional into your business:

1. Check their qualifications and experience, and make sure they are accredited by the relevant bodies, for either accountants or bookkeepers
2. Go with someone who at least has a website – in this day and age they should be in touch with modern ways of doing business
3. Check how they keep up with new legislation, find out whether they are tax accountants, and ask them how they manage their clients
4. Finally, you can’t beat good old word of mouth. Take recommendations from trusted businesses – but remember to check them out for yourself too

Good luck with getting control of your finances. I'd love to know how you deal with these challenges in your business - feel free to leave a comment below.