DEALING with the finances can be a major issue for small businesses, which may not have the expertise to get to grips with what can be a complex issue. Although most entrepreneurs will initially find themselves stuck with the job in the early days of their business, many seek out professional advice when they become more established.

We asked some successful North East entrepreneurs how they approached the issue:

Michael Bates from Durham-based consultancy Walton Bates Associates:

Recruit a financial controller. This could be a qualified accountant, or bookkeeper or it could be a highly competent administrator or part time help from an agency, but there must be at least one person obsessed with the finances of the business and ensuring that accurate financial data is centre stage in all business decision making.

Paul Campbell who runs Newcastle’s The Amazing Group which runs an educational software company and a website where unsigned musicians can promote their work:

“In the very early days, you’ll be doing the books. That’s a good thing, provided you take lots of advice, do your homework and really understand the issues. At least this way, you should know what’s really going on.

Then there comes a time when the business grows and you need someone else. That’s really dangerous. My first business went through four bookkeepers, all of whom were useless, before I finally found someone I could trust to tell me what was really going on.

The incompetence of the others was one of the main contributors to the failure of that business; it was a disaster, not being able to rely on what they’re telling you.”

So when you find somebody you can really trust and who can tell you it like it is, cling on to them for dear life.

Simon Pearson of Middlesbrough-based recruitment and marketing company, Pearsons:

“We have a financial controller who is paramount. Cash is always king in a business, through to very detailed management reports on a weekly basis, we know exactly where we are, who’s spending what, how close we are to budget, how far off budget and we can take action fairly rapidly rather than having to wait months to get management information.”

Sadie Ayton, who runs Consett-based lingerie retailer Sadie the bra lady:

“I personally look after my financial control. I do the finances for all of my six shops, as I strongly believe that no one ever is 100% trustworthy with financial matters other than their own.”

For more How I … tips go to www.ifwecanyoucan.co.uk, which is inspired by the Entrepreneurs’ Forum, a North East membership group for sharing entrepreneurial advice.