Accounts management should be a top priority for all businesses but especially for SMEs. The smaller your budget is, the larger the relative damage is in the event that a mistake is made. As the New Year sets itself in motion, businesses are granted a fresh slate with which to work from and finances should be the first thing to be overhauled during this period of change and progression.
The beginning of the year is the perfect time for companies to make changes to the way they handle their finances.
Here, we take a quick look at why this is and what businesses can do to create the promise of a more prosperous 2014.
The recession is behind us
Whether or not you agree with the public spending cuts which are still being enforced by the current government, it is a fact that the UK is in a better financial situation than it was just a few years ago. With recovery looking closer each day, it's down to small businesses to provide the extra push required to alleviate financial problems.
Throughout the recession, it has been difficult for companies to manage their finances. With a decrease in demand in a wide range of industries during the recession, businesses were forced to be somewhat reactionary when it came to their budgets.
With the country in a better financial situation, now is the time for companies to bring back a bit of ambition when it comes to targets and spending.
What can companies do?
The first step for any company looking to make changes to their finances is to seek a comprehensive overview of their finances. It is not possible to make shrewd decisions regarding your finances until you have a thorough understanding of the current state of affairs.
It's therefore a wise idea to assign a team to concentrate on your finances. Understandably, not all companies are in a position to employ a dedicated team to take care of their finances and instead it's possible to make use of online accountancy software which can allow multiple persons to access the accounts information and manage their accounting online. This is a far more fluid and flexible system than some traditional options, ensuring easy and secure access to financial data.
As the recession disappears, it is important for small businesses to make themselves aware of schemes which they may be eligible for. The government is keen to boost the growth of small and medium sized businesses and there are sure to be a number of schemes from which they can benefit.
Lending packages are often available to encourage investment in smaller firms. Businesses need to be aware of such schemes in order to ensure that they are registered and eligible for anything from which they could benefit.