There have been numerous positive reports in recent months about the continued improvement of the UK economy since the
2008 financial crisis. Considered by many to have been the worst financial
scenario since the Great Depression in the 1930’s, it is hardly a surprise that
the repercussions are still being felt by many in the UK today. It is estimated
that as many as 17,000 small businesses were
shut-down between 2008 and 2010 due to the devastating effects
of the recession.
It cannot be denied that conditions are still not ideal for businesses
across the UK, with many struggling to stay afloat due to continued recovery of
the UK and the current situation in the Eurozone. Whether you are a B2B or a
B2C focused business, there are certain strategies which can ensure you are
running an organised and, most importantly, profitable operation.
One useful starting point is to identify any potential roadblocks
preventing your company from growing and eliminating them through assiduous
management and innovative planning.
Another is to start by evaluating
your business plan and ensuring all of your processes are clearly outlined to
ensure that efficiency and productivity are prioritised. If you do not have a
business plan, consider creating one to make sure that all of your employees
understand these processes and that they are aware of the company’s expectations
and standards from the outset.
An additional area which numerous companies do not effectively invest in
is software to assist with various processes and procedures. I have been
surprised at how many companies do not invest in Xero or FreeAgent accounting software and
continue to use traditional spreadsheets to manage their accounts. Switching to
cloud accounting can be both time saving and cost-effective for small business,
so it is wise to invest in various software solutions.
The introduction of computerised accounting systems has provided
businesses with some major advantages in terms of speed, efficiency, and more
importantly, accuracy. There is also the added bonus of being able to view the
company’s accounts in real-time, which can prove to be a major advantage for
smaller businesses, and provide a clear overview of the performance of the
company. It can also offers the opportunity for the company to gain insights
which are not normally possible via a traditional paper or spreadsheet-based
system.
Aside from the above, there are other more specific advantages to using
accounting software, as detailed below:
- Quickly create estimates and proposals
- The ability to manage your invoices and to track when a payment is due either to yourself or to a client or customer
- Ensure that all of your expenses are fully trackable at all times
- Keep on top of your tax payments and never miss an important deadline- a good piece of accounting software will enable you to export the data to your Outlook or Google calendar for your convenience
- Ensure that your company’s time and resources are used as efficiently as possible; cash flow should also show signs of improvement through better debt collection and inventory control
- As we move more and more towards a globalised society it is now more important than ever to have the ability to deal in multiple currencies. This helps ensure that any issues with currency exchange rates are kept to a minimum
If you are a business owner of a small to medium-sized company,
investing in software solutions will certainly prove to be worthwhile, especially
as other businesses continue to digitize. As well as all of the above
advantages, it also takes away that element of the ‘unknown’ that
upper-management usually associate with their accounts. While if you are part of upper-management, you’ll how stressful managing
accounts can be, especially for a smaller business. Accounting online can
reduce this stress and make the process easier for all levels of management.
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