Essential tips for managing the financial growth of your business
As your business grows, adding clients, projects, products, and employing more staff, the financial operations of your company become more complex. Growth spurts are exciting times but to avoid the pitfalls, it’s essential to be on top of managing the financials. Here are the most important aspects to consider relation to financial growth and ensuring the health of your expanding business.
As your customer base, internal teams and supply chain evolve, updating your financial system to successfully manage the processes is critical. Older systems and out-of-date software are often the hidden handbrakes impacting a company’s financial speed. Updating to a fully integrated, cloud-based financial management system, such as Xero, offers a wide range of benefits. It enables you to link all of your business data in a central location from which you can access the latest information and reports on a daily basis. You can also distribute information automatically, eliminating the need for multiple emails and phone messages, thereby saving time and increasing productivity. Click here for more information.
Staying one step ahead of market trends and costs
With technology that tracks sales and expenses on a daily basis, you gain the insights you need to pinpoint unnecessary expenses or outgoings which can be streamlined with better pricing from suppliers. You can also highlight those products or services that are giving the strongest returns and construct your marketing plans accordingly. Being able to access and analyse this data on a daily basis means you can react to market trends with maximum speed and efficiency.
Many companies rely on antiquated spreadsheets for their accounting, and these are both time consuming and prone to errors. An automated system that compiles your financial data and makes it available digitally to stakeholders will not only improve workflow, it will also increase your efficiency in budgeting, planning, and forecasting, three of the most vital components to a company’s fitness and future prosperity.
Don’t overlook the importance of efficient invoicing
Cashflow is at the heart of a company’s financial health, and it’s essential not to overlook the obvious tools, such as invoicing. View your invoicing as an important resource, the same as you would a valued supplier or business tool. When a business is going through a growth cycle, it’s not uncommon for some tasks to take longer due to the extra workloads. Ensure your invoices go out on time with clear terms for the timing and the options for payment. To ensure your invoices go out on time, it’s important to have a schedule and a system that is fast and accurate. For late payers, make certain you have a friendly, follow-up reminder process in place.
At Sydney Accounting, we’ve assisted many businesses with their financial growth as their company expands. To find out how we could assist you, send an email to firstname.lastname@example.org or call us on 02 9810 3222