Software isn’t just for large organisations; as technology becomes the critical path through which most financial and strategic decisions are made, investing in software can help to accelerate growth and promote good performance. SMEs may not have the resources of larger organisations, but there are still ways in which they can streamline processes, save money and maximise profits. Add to that the fact that, in this digital age, most potential clients have access to the Internet practically 24/7, making your business safe, mobile-compatible and accessible could mean the difference between simply surviving and thriving in a competitive world.
The rise of component software is great news for small and medium sized enterprises, allowing you to pick modules that you need now and to which you can later add, without wasting money on functions that you don’t yet, and may never, need. Invest in key elements and add to them as your needs evolve and your budget increases.
Manage your budget
Smaller businesses tend to be lured into a false sense of security when it comes to balancing the books; after all, the business is only small, it doesn’t take that much to work out manually what is coming in and what is going out, right? A common downfall of SMEs, failing to keep a handle on finances and manage the budget effectively can seriously inhibit growth and performance. By using software to manage your accounts, the transferring of finance, and forecast your income and expenditure, you can set a realistic budget which will become the foundation of your organisation’s strategy for progression.
Understand seasonal cash flow
All organisations will have pronounced seasonal cash flow, depending on the nature of their business. By understanding your cash flow, you will be able to make wiser decisions about when to reinvest, and how much. Industry-specific software enables you to analyse your cash flow and help you to make reasonable predictions about your income and expenditure, allowing you to keep a financial cushion for times when your cash flow troughs, which can be replenished when it peaks.
Outsource back-office functions
Outsourcing is no longer solely for the big corporations; it will allow you to focus on growing your business, gaining client trust and optimising profits while an industry professional takes care of elements that, maybe, are not your strength. From HR to accounts, compliance checking to data analysis, outsourcing can improve efficiency whilst freeing you up to focus on your core functions without the costs associated with taking on employees.
Increase assets and access capital
With the fragility of the economy, it is not been always been possible for SMEs to access capital at any given point in the future, should they need it. This is slowly changing, and accessing capital now can help you in a number of ways: by expanding your business to buy another company, launch new products or services, or hire employees; refinancing old debts at the current, lower, interest rates; or creating a line of credit (LOC) to meet day-to-day business costs and cover temporarily reduced cash-flow caused by unforeseen circumstances. A wealth management firm or good wealth management software will enable you to assess the risks and benefits associated with potential investments, helping you to protect your assets.