We understand that things don't always go to plan - 2020 is an example of how the world sometimes doesn't care about our plans, after all - but it's essential that we have an idea of what we're aiming to do when managing money in our businesses.

So, as we approach the start of another new year, what can you do to get yourself financially ready for 2021?

Have a monthly budget

Set a budget for each month of the year as a rough plan.This won't be 'set in stone' - but it'll be a ballpark figure that you can have in mind at all times. Consistently sticking to this figure will mean that you're on track to keep to your forecasts. Consistently missing it will be a warning sign that you need to have another look at what's going on in more detail.

Take into account seasonality and trends from previous years to make your monthly figure as accurately as possible.

Reduce borrowing

Prioritize your debt in 2021 to reduce the risk your business carries. Ideally, put a plan in place to speed up repayments if you can or, if you have debts that can't be quickly paid off consider if you're able to renegotiate the terms in which this is held to give yourself more breathing space and to avoid payments from choking off your chance of growth as the economy recovers from 2020's crisis.

Build cash reserves

Building a cash reserve is really important to give you some protection for short-term and emergency needs. This can help if you encounter an unplanned bill or expense. You can set up a cash reserve by automatically adding a payment to your savings pot every month and treat it like a bill - make paying yourself as important as paying anyone else if you can. Things are bound to be tricky for months - if not years - to come as we face up to the cost of the Covid crisis, so that 'rainy day fund' is going to come in handy.

Monitor spending

Set a realistic target to trim your spending in 2021. Go through your figures line by line - every check and every card payment - and question whether or not each item of spending is necessary. It's so easy to slip into bad habits and an audit like this can really throw up some fantastic opportunities to save cash.

Switching bill providers, looking for alternative contractors and suppliers, cancelling unneeded subscriptions or reducing use of materials and equipment can all chip away at your costs and leave your business leaner and more efficient by the time the year is out.

Set a budget plan, cut your debts, build a rainy fund and slash that spending and you'll be in a strong position to cope with whatever 2021 brings.