According
to Hartmut Wagner, MD of Cloud Solutions Exact, “many SMEs who are eager to
grow are not doing themselves any favours, particularly
with so many of them expressing concern over their cash-flow.” He was referring
to the results of an online survey, commissioned by Exact from Atomik Research,
of 450 UK SMEs. It found that many of these companies were losing out big time
through poor internal systems and procedures.
Staggering Loss
Potential
About
a quarter of respondents did not feel completely in control of their business
finances. Some even said that they had omitted to send out invoices. If the
potential losses were replicated across the 4.8 million SMEs noted in the Business Population Estimates for the UK and
Regions 2012 report of the Department for Business Innovation & Skills,
they could add up to over £3.7 billion.
With
concerns over cash flow and business finance being the second biggest stress
factor for entrepreneurs, the first being getting enough business, losing out
on revenue because of poor invoicing procedure is the last thing they need.
Use Financial
Support Professionals Wisely
The
survey also looked at the relationship between the companies and their
accountants who, it was reported, were the most trusted business advisers. But
in the nature of the relationships, communication between them was irregular
and sporadic, therefore best use of their professional skills was not being
made.
If
you have outsourced bookkeepers,
they are not likely to allow you to forget to send an invoice, as long as they
know about the service or product that has been supplied. An objective
viewpoint is often useful when you are so involved that it’s not easy to see
the wood for the trees. When you have a good working relationship with your
bookkeepers and are in regular communication with them, they can also point out
inadequate procedures and potential problems, and help to prevent them.
Good Communication Brings
Rewards
The
best bookkeepers can often save
you the expense of involving your accountant, but will also know when that kind
of professional expertise is essential. They will often have come across similar
issues and difficulties to yours among other clients, and seen how they have
been solved. You can benefit from their experience as long as you allow free
communication and are prepared to accept their straightforward and down to
earth advice. Make sure you stay in control of your business finances by
discussing your systems and procedures with your outsourced bookkeepers and
using them wisely.
