No matter where you are in your business’s lifecycle, the current impact of post-COVID inflation paired with the attempt at curtailing that is starting to take effect. Whether perceived or actual, there is a general feel of the coffers being squeezed. Most industries are facing significant challenges whether it be rising costs or retracting revenue streams and in some cases a combination of both.
What can you do?
Proactive decision-making around finances is essential. Should I expand? Should I downsize? Should I invest in machinery? Accounting system data needs to be both up-to-date and reliable in order to help you answer these questions. Once that integrity has been established, patterns from the past paired with potential scenarios in the future can form a plan moving forward, creating good habits to ensure business sustainability during rough times will allow you to create a great platform to grow from once conditions become more favorable.
What are the steps?
The first step is to ensure historic data is in order. This data drives the end of year accounts process. Accounting systems based on the cloud can now store much of that paper that gets dropped off in the show box. A simple change here can create significant efficiencies and make that process run more smoothly.
The second step will be to ensure that the current data is up to date and ready for you to see where you profit is at, with a moment’s notice. Systems now have AI-driven coding process that enable transactions to be coded almost automatically. This not only cuts down on processing time but means the system can be up to date to the day.
Do you have a plan?
Really successful businesses make a plan and measure against that plan. This doesn’t have to be too complicated, simple setting a budget each year and comparing actuals to that budget will highlight areas of success. The real benefit is to identify problem areas which can then be eliminated or mitigated. If you want to get started with improving your business, get in touch with your director or client manager who can get you started.
