When running a small business, the lines between success and failure can sway on either side thanks to the individual choices made that barely seem significant at the time.
The issues that many small businesses can face are primarily concerned with the forecast and predictions of growth over the course of the financial year.
With 25% of businesses failing in their first year, many owners can be forgiven for stalling in decision making and developing further. However, there are decisions that can be made swiftly, at a cost and develop the company much further in the long term.
With many small companies the problem lies with the way in which they organise and manage their business finances; not everyone that runs a business has an accountancy degree or can afford to hire an in-house accountant.
An alternative is to use an online accounting package. An accounting service can help with all aspects of managing business finance, from invoicing, managing suppliers and making online submissions to the tax man. Many businesses may feel they are too small for this investment but with affordable monthly payments, that is often not the case.
A survey found that 20% of SMEs (small to medium business enterprises) have forgotten to invoice for goods or services at least once with the amount for some between £5,000 and £10,000. This shows that the UK’s 4.8 million SMEs are owed as much as £3.7billion.
With all the things a small business owner needs to stay on top of, it’s easy to see how the financial admin can begin to slip. However, by using an online accounting service can really help a small business to tighten up its finances. Instead of creating an accountancy department or outsourcing it to a specialist firm, there is the opportunity to use easy-to-use, efficient service that can allow multiple users to access and work collaboratively, entirely online.
There is 24/7 access, from any device with an internet connection, meaning that employees can invoice customers and process transactions any time, from anywhere. Using online accounting software can provide the company with accurate information that helps to create an organised, well-run company with finances in order and reputations intact.
Many small, emerging companies can be naïve when it comes to organising the finances, and during the early days of running a company the smallest of details can be missed and cost money. By using an online accounting service helps business owners to be more organised and informed, helping them to make sound business decisions
If you are an owner or employee of a small business and are in need of help beyond accountancy, you can click here for advice and support.