While small to medium enterprise (SME) owners may not have a great deal of control over broader economic issues, they do have control over how they plan and manage their finances.
The failure of many SMEs to make it past the critical 3.5-year mark is more as a result of their inability to get the fundamentals right, rather than being able to deal with issues such as political uncertainty, crime or credit-rating downgrades.
Several SMEs do not gain an adequate understanding of their markets or the competition they are up against. In addition, failure to manage their finances properly or to access funding and adapt to changes in the marketplace can also be serious hindrances to success.
I believe that without proper financial planning and management, businesses place themselves on the back foot. Business owners can only make informed decisions when they have a clear view of what is happening with their finances.
That’s why having the proper financial management tools in place is so important for start-ups and SMEs. These are aimed at helping businesses manage their finances properly and place them on a sound financial footing.
Tangible outcomes of a good system include increased productivity, reduced monthly expenses, improved accuracy, simplified tax compliance and better financial security. An effective system can also provide critical business insights and allow business owners to make informed and proactive decisions.
Efficient accounting solutions can help speed up business processes, affording business owners more time to focus on their core processes and growing their operations. After all, time and money are the most precious resources when it comes to running a small business.
Solutions include analysis tools, report making applications and payroll assistance. In addition, income and expense trackers provide valuable information for tax and audit preparations.
I urge SMEs to plan for 2019 if they haven’t done so already. It’s not too late to prepare for the year ahead and, with the financial year end for many businesses looming, now is the time to get a good system in place.