You need to look for every opportunity to safeguard your organisation. SMEs are especially vulnerable, with up to 50% failing in the first year. Often, this is due to errors in business costs, compliance, and planning, and the failure to partner with experienced professionals. Thankfully, there are some accounting strategies that can place valuable safeguards around your company. Here’s how we do it.
A lack of financial accuracy is often a primary reason for SME failure. This is unsurprising. Financial accuracy is needed for everything from detailed insights into business expenses to ensuring that your personal spending is not accidentally misclassified as a business cost. Little inaccuracies such as these can quickly snowball into an avalanche of financial headaches. At Vanilla Accounting, we see this all the time.
With our management accounting approach, financial accuracy is brought into sharp focus. Accurate expense tracking with an expense management system empowers you towards clear, informed, planning.
Expenses can be a major headache for SMEs. By tracking the expenses for your business, you can ensure policy compliance. This offers clarity regarding what is and is not acceptable, and quietly yet firmly enforces that compliance.
Finances are easily wasted in any organisation. This is usually due to the endless headache of accurate forecasting, although it can also be because complex finances within the company cloud the picture. Your business has multiple financial patterns, and these are the key to optimising growth. Patterns tell you where you are frittering money, where you can reduce costs, and where you can enhance organisational efficiency. However, seeing those patterns is a challenge for everyone.
With an expenses system, advanced AI analyses data to explore and understand your organisational patterns. This enables you to optimise your performance and construct a vital safety net.
Strategic decision making should be the main focus of your day. However, studies repeatedly show that SMEs struggle with accurate planning. There are many reasons for this, but most of them are due to the immense complexity of the process. Conflicts, agendas, confusion, and the general difficulty of trying to make accurate predictions in an uncertain climate are all contributing factors. The problem is that without good, strategic decision making, your company is at risk.
With comprehensive expense data from an expense tracking system, you can take complete control of your strategic decision making. Budgeting becomes effortless, resource allocation becomes obvious, and financial empowerment is yours.
Tax compliance can cause a catalogue of problems for your organisation. One of the biggest risk areas is expense claims. Inaccuracies can easily be interpreted as fraudulent, and the consequences can be serious. Both employees and the organisation can encounter financial losses, legal issues, PR damage. For you, there may be follow-on problems during the next audit. As such, tax compliance can be a major risk area for SMEs.
With financial and management accounting support, accurate expense management is guaranteed. As such, only legitimate business expenses are claimed, and your integrity is ensured.
Business costs and claims can be a major hazard area for SMEs. To avoid your company falling into some of the hidden traps, download our FREE Guide to Business Costs and Claims.
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