Good financial management is critical to the success of any business, but it is particularly important in small to medium enterprises (SMEs) where the risk of insolvency is often little more than an unpaid invoice away..
1) A key concern for small business owner-managers is cash flow management. Small business owner-managers can enhance their firm’s profitability through the improvement of how efficiently they manage their working capital.
2) SME owner-managers can enhance their firm’s profitability through more efficient management of accounts receivable and payable, plus the monitoring of inventory.
3) SMEs, particularly firms engaged in growth, need to learn how to maintain financial records and use financial reports to make business decisions. Timely reporting on cash flow, liquidity and other key performance indicators (KPI) remain essential to the firm’s survival and success.
4) Most small businesses work with an accountant. However, as firms grow larger the need for outsider support increases, but it is the quality of that advice and support that is important. Work with an accountant who offers proactive strategic advice and direction to help you achieve your overall business objectives.
Finance management and the efficient management of cash flow and working capital are critical to survival. They also help to boost profitability and this can in turn facilitate growth.
Owner-managers who are experiencing growth or financial stress need to seek outsider assistance.
Talk to UHY FDW who not only offer financial management advice, but also business advice to drive your businesses success.
Courtesy of cemi.com.au.