Getting out of Financial Difficulty
Many businesses have had to invest in new technology, additional staff, online marketing and energy efficiency measures in the last year or two in order to remain competitive. Whilst these investments can support growth and generate a return on the investment in the long run, they do tie up funds in the short term. This can leave companies, especially SMEs, with limited cash flow.
It is possible for SME’s to apply for business loans from banks, crowd funding organisations and through specific funding streams, however these are limited and it isn’t easy to meet the required criteria. With less available money, it is even more important that careful financial management takes place. However, with the daily demands of a business, it can often slip through the net.
Even with a relatively successful business, it only takes an unexpected bill, the late payment of invoices and a tougher month to move into the realms of potential financial difficulty. The earlier a potential problem is identified, the easier it is to take action and put measures in place to reduce outgoings and collect owed payments.
For many SME’s the financial records aren’t the area of business that they love. Of course, the finances make it possible to run the business and make a living, but it is usually other areas of the work which have encouraged someone to set up their own company. The products and services they offer are the priority, hopefully along with excelling at customer service.
Establishing a range, promoting the products and services, attracting new customers, keeping ahead of trends, providing a personalised service and the day to day running of the business all take up considerable time. It is therefore not a surprise that many SME’s don’t have a lot of time to devote to financial management.
This means that when figures on the bank statement look worrying, or it’s time to complete the tax return, the thought of getting everything in order can seem like an enormous and daunting task. If you find that your business is facing financial difficulty it can be even more stressful and difficult to approach in a logical manner.
Establish a Routine
If you aren’t in the habit of money management, gaining financial control isn’t easy, so don’t expect immediate results, however if you try to tackle the problem a small step at a time, it is achievable. Rather than sending yourself into meltdown by trying to get through everything in one intense effort, establish a daily routine that allows you to dedicate a set time to your financial management when you are mentally active. Set small, achievable tasks to do in this time slot.
Whilst you may feel that the last thing you need is to pay out for professional assistance, it could be a very wise decision. An experienced bookkeeper will be able to help you get things in order and set up systems to help with future financial management. Bookkeepers aren’t there to judge the state of your affairs or your financial systems to date; they are there to make it easier, quicker and less daunting to manage your money.
With an efficient system in place and professional support when you need it, you will be better able to avoid financial difficulties. If your business could benefit from professional bookkeeping, Oxford based RCH Accounts can assist.