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Why Do Small Businesses Struggle With Financial Management?

By January 22, 2018Blogs

UK small businesses often struggle day to day with all aspects of their financial management, but why does this happen? Every business has areas to improve and identifying your financial weaknesses will set you on the right path.

Coleman & Co can provide expert advice to every small business, ensuring you have effective financial management to guide your business through every situation.

Businesses Struggling

20% of UK small businesses admitted to struggling with daily financial management, with 30% saying finances were a major concern. Providing for both customers and staff members, this can become a major problem for every business.

Businesses should always be prioritising, seeking advice and stressing the importance of finances. If your small business is worried about finances, having the issue high on your agenda gives you the best opportunity to improve. If you continue with poor management, it will impact your business in a negative way for everyone involved.

Moving Digital

Many businesses who fail to go digital, will also fail to manage their finances correctly. Using digital software to keep control of finances and record transaction saves time and improves accuracy for your business. If you carry on recording finances manually and on paper, efficiency of financial management won’t improve.

Going paperless also has other benefits as you reduce the costs of creating these financial records. By having the correct software installed for a one-time fee, you are guaranteed accuracy of all finances. This can help you improve your business through the features it has, whilst also being able to monitor cash flow easier. Systems will process finances much quicker than you, allowing simpler management.

We can provide the installation of quality accounting systems, whilst managing your finances through the software. This ensures finances are always being managed closely with little risk to your company.

Inaccurate Cash Flow Statements

Monitoring cash flow is important for every business and every transaction needs to be recorded for an accurate cash flow. Decisions must be made quickly within every business and to have good financial management, you must understand the financial condition of your business. Finances can get out of hand if you fail to manage them correctly. Monitoring your cash flow should be an essential for every business to stay organised.

As long as you record transactions correctly, your cash flow statements will also be accurate. Having a cash flow allows you to create forecast for the months ahead; financial planning is of high importance for successful financial management and for small businesses to avoid possible struggles.

Outsourcing Financial Management

Small businesses who are struggling with their daily financial management could find outsourcing to be their best option. Accountants have fantastic knowledge of financial management within every industry and outsourcing will save you time and money. Although the cost of accountants may seem like an added cost you don’t need, it can benefit you greatly.

By having great experience working with many small businesses, accountants can advise you on the budgets you need to create and the expected revenue from your cash flow forecast. Financial planning with help you manage money more effectively, building more success for your business’ future. By outsourcing to accountants, you have the best opportunity for your business to stay in control of financial management.

Contact Us

With one in five businesses struggling with daily financial management, finding an alternative to turn this around can be difficult. Coleman & Co can help all small businesses throughout the Lisburn area and beyond. With financial planning service, we can effectively manage your business for greater success. Contact us on 028 9266 3599 or fill in our contact form today.

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