Cloud-based accounting is one of the most effective innovations for small and medium businesses. It helps them work smarter and faster, provides a better view of finances and improves team collaboration.
Financial year-end is one of the most important points in a business’ financial calendar – providing a key opportunity to re-evaluate overheads, costs, turnover and profit, in line with industry economics and performance rates.
When it comes to financing a small business so it can grow and expand, it’s easy to see the attraction of a bank loan. Borrowing money from a source you’re familiar with can be a more comforting prospect than pitching to complete strangers; especially when you only need to worry about paying the loan (and the interest) back within an agreed timescale, rather than having to think about fiddly issues such as dividends or equity returns.
There are many benefits to using cloud based accounting software, however as with most things in life, along with benefits come potential pitfalls.
Britain’s 49 million small businesses make a substantial contribution to our economy, employing around 52% of the UK’s workforce and generating almost half the UK’s turnover.
With the economy on the upswing, many business owners are thinking about how they can capitalise on this opportunity and grow their businesses. While some businesses may be contemplating opening a new location, hiring, or upgrading an outdated POS system to take advantage of the economic uptick, freeing up cash to pay for these new opportunities isn’t as easy as identifying the need for them.
Summertime means one thing for many businesses – work, work, work. Companies operating in tourism, wedding-related firms, garden centres, and even those that harvest and sell crops are all examples of seasonal businesses that flourish in the sun.
Cloud-accounting has certainly seen a substantial increase in demand. Many small firms of accountants in the UK have embraced the cloud in a big way. This has helped many small businesses improve their book-keeping and accounting function.
Reports show that for many businesses, expenses account for a significant proportion of overall expenditure – between 8% and 12% on average, which in turn is forcing them to look closely at more cost effective and time-efficient solutions for expense management.
Since the 1st October 2014 employment tribunals have had a new power which could have far reaching implication for employers. Employers that lose an equal pay claim will now have to undertake an equal pay audit to address their equal pay problems. Employers could also potentially a fine with a cap of £5,000 for non-compliance, followed by a further fine of a maximum of £5,000. The equal pay audit results will be published, unless there are legal reasons not to do so.
How quickly companies are paying their bills is a bellwether for how well the British economy is performing. Debt repayments should be swift if cash flow is good. Last tax year, 2014/15, businesses in the UK settled their bills a day quicker than in the previous tax year, indicating growth in both the economy and confidence of businesses.
Even with a return to economic stability, entrepreneurs are faced with a number of pressures to ensure business survival. The key to longevity is to eradicate common business problems, including day-to-day frustrations such as managing accounts, which can be time consuming and costly due to cumbersome accounting requirements and processes.