Why a family business needs a modern approach to thrive

Blog

Family businesses hold a special place in the UK economy. According to the Institute for Family Business, these firms account for around one-third of private sector employment. They support more than 14 million jobs. Many of these businesses have impressive stories of resilience, but they also face an extra test when passing control to the next generation.

We see this test every day at Evans & Partners. Our clients often ask how they can help new owners or managers take over smoothly. That question comes up more often when families rely on older accounting methods. Paper records and outdated software can cause delays, confusion, and missed opportunities.

 

The dangers of the old ways

Some family businesses still use methods first set up decades ago. That might feel familiar or safe. But it can lead to errors and wasted time. A small mistake on a paper invoice might go unnoticed until month-end. That can slow cashflow and confuse your business partners. Or you might miss out on key reliefs or allowances for the 2024/25 tax year if you only spot the details after deadlines.

The new generation often wants reliable systems that do most of the busywork for them. They expect everything to be online. They want numbers they can check from anywhere. They don’t want to spend hours each month searching for missing receipts. When that doesn’t happen, it leads to frustration. You risk losing bright new leaders who feel held back by old processes.

 

The growing impact on your bottom line

This slow way of working hits your finances. If you still keep your records in spreadsheets or on paper, you might not have real-time visibility of how your business is doing. Late updates to your profit and loss statement mean you might make decisions based on old figures.

HMRC’s requirements also change. For the 2024/25 tax year, the personal allowance remains at £12,570. National Insurance thresholds can shift too. If you track them incorrectly, it could land you with penalties. Even if your accounts are accurate, they might be late. That can lead to fines from HMRC. You can check the official guidance on deadlines and penalties at Gov.uk.

With the cost of living still on everyone’s mind, you want to avoid any fine or unplanned cost. Worse, an outdated accounting approach could hold back your big ideas. You might miss a new growth opportunity because you can’t see your true cashflow in the moment.

 

A modern accounting system

Modern software is affordable, simpler to use, and often works straight out of the box. Cloud-based tools like Xero capture each invoice and bank transaction in one place. You can spot errors in minutes rather than days. The software also updates automatically, so you’re ready for new tax changes.

We help family businesses set up Xero so they can run reports in seconds. That means the next generation can tap into the numbers anytime. They can share those figures with parents, uncles, or siblings. Everyone can access the same data, which cuts out confusion.

We have experience with small teams who want to reduce time spent on manual tasks. Our approach? We take over the setup and training, so your family members can start using the software straight away. We also explain which features apply to your sector. A farm run by three generations might want stock management, while a family-run café might focus on daily cashflow. We tailor the plan for you.

 

Growth through expansion and diversification

A modern approach sets you up for growth. When your numbers are accurate, you can plan for bigger expansions. That might include launching a new product or moving into a new market. Families often need to separate personal finances from business money. A clear accounting system can make that simple.

According to a recent survey by Barclays, 41% of UK SMEs plan to invest in digital tools this year. That includes software for finance, payroll, and stock control. If your family business isn’t on that list, it might be time to rethink. Making the switch can help your new generation feel invested. They get the data to test new ideas without risking the whole operation.

 

Advisory services for family businesses

We do more than set up software. Our advisory services cover strategies that can help you grow. We look at your business goals and see how modern finance systems can get you there. That might include advice on the best structure for your company or help with planning your next product line.

If you want to know more, you can read about our business accounting services on our website. We’ve helped many UK family businesses expand, and we can share those tips with you. We also keep track of changes in corporation tax and allowances for the 2024/25 tax year. That means you only pay what you owe, and nothing more.

 

Looking ahead

Family businesses often pass on more than a set of balance sheets. They pass on values, dreams, and a sense of pride. The younger generation wants to honour that past. But they also want to build on it. With an up-to-date accounting system, they can do both. They can keep the spirit of the business alive while exploring new ways to earn revenue.

We find that younger owners often champion ideas around sustainability. Others see a market gap and want to fill it fast. With current data at their fingertips, they can make decisions without second-guessing. That leads to healthy growth, which benefits everyone in the family.

 

Is it time to modernise your family business?

Family enterprises don’t have to cling to old systems. They can combine tradition with new tech. We see it work for small shops, medium-sized manufacturers, and even large multi-generational farms. The results speak for themselves. Owners have a clear view of their finances. They respond faster to market shifts. They also find it easier to bring on outside advisors or investors.

If you’d like to explore what a modern approach could do, get in touch. We offer a friendly chat about the right tools for your business. We’ll also help you with any tax or VAT questions for the 2024/25 year. You can call us or click on our website. We’re here to help.

 

Looking ahead

Family businesses power much of the UK’s economy. They thrive when each generation has the right tools and advice. An updated approach to accounting saves time, cuts errors, and opens the door to fresh opportunities. A modern system is more than a tool – it’s a way to show your business is ready for the future.

We can set everything up for you. We can also talk you through the best path for your family to grow. We’re always ready to help. Pick up the phone or visit our website to find out more.

Other posts you might like

“THANK YOU FOR YOUR HELP”

It has been a tricky year with all the closures and disruption so our thank you for your help is more heartfelt than ever. – ...

“First class professional service”

‘I have been delighted with the absolutely first class professional service …You offer excellent value for money.’ - R B-Harris.
Your Year End Tax Guide 2016/17

Your Year End Tax Guide 2016/17

At Evans & Partners, we aim to keep our clients informed and help you to understand the tax planning opportunities ...

WHAT OUR CLIENTS SAY ABOUT US

Our clients appreciate our personalised approach, expertise, and dedication. They highlight our reliable support, proactive advice, and how we help them achieve their business goals while maintaining a work-life balance. Discover how we can help you succeed.

FIND OUT HOW WE CAN HELP YOU

Ready to take your business to the next level? Contact us today and let’s start your journey towards success together.

Need our help? Get in touch