Toothbrushes, paper bags, razors, tissues… some things are no longer fit for purpose as time goes by. The same is true of software — particularly when it’s managing your business.
With millions of hours wasted on financial admin tasks every year*, the risks of outdated software operating in a modern finance team are huge. But why? Keep reading to find out more…
- Topic:
- Finance
The widespread disruption caused by Covid-19 only underlined the importance of working efficiently to keep the wheels turning.
Some saw their costs go up due to new infection control measures and staff shortages, while many office-based firms unexpectedly benefited from reduced running costs and expenses bills because staff were working from home. Whatever sector you work in, months of uncertainty are likely to have meant sleepless nights over cash flow.
Late payments from customers, who may have been of experiencing cash flow problems their own or intentionally delaying payments, are extremely damaging for firms but are unfortunately all-too-common.
The Federation of Small Businesses (FSB) found that 62% of small businesses had seen an increase in late payments or had pay frozen completely due to the pandemic.[1] Some now find themselves in a precarious financial position and it’s certainly worrying to think that 17% of SMEs in the UK are at risk of going out of business in the next four years - with lengthening payment periods suggested to be a big factor in this.[2]
Experts believe that if every business is paid on time, it could unlock between £40bn and £60bn of additional revenue for small businesses.[3] Life-changing funds that could, without a doubt, secure the future of many SMEs.
- Topic:
- Finance
According to a recent study from the Parliament Street Think Tank[1], over two thirds of SMEs say they felt let down by their banks during the pandemic, citing feelings of frustration that they did not receive the right level of support and communication to help them navigate the crisis.
SMEs are the backbone of the UK economy, accounting for three fifths of employment and around half of turnover in the UK private sector. Yet, they don’t have the same resources as larger businesses. Many depend on their external partners, banks, tech providers and consultants, to help them achieve their goals.
As many as 55% of SMEs are actively considering a new banking provider - and it’s only a matter of time before they review all external partners to ensure they are getting the best support possible.
- Topic:
- Finance
In response to the effects of the Covid-19 pandemic, many SME businesses in the UK have now set out their hybrid working policies, enabling employees the freedom to choose where they work best either all the time or at least some of it.
According to research, 71% of SMEs plan to implement hybrid working long-term, though many of those may not have considered the new challenges that may arise for finance professionals – especially when tracking expenses. Clear hybrid working policies and investment in technology to manage budgets will be needed.
- Topic:
- Finance
Not-for-profit and charitable organisations in the UK have faced an insurmountable number of challenges in the last 16-months – facing an estimated £10 billion loss at the close of 2020. Despite many being used to operating on a shoe-string, Covid-19 brought about changes that affected the sector like never before.
While many have continued to lose revenue through a lack of available support, there are a number of organisations that have adapted and pivoted services in order to keep their charity’s finances afloat. So, how can other charities follow their lead and ensure their funds go further?
- Topic:
- Finance
For finance professionals working in a professional services business, time is often the biggest restraint that stops them from focussing on value added-responsibilities, such as analysing financial data to provide more realistic, more accurate forecasts of how projects impact the business. Or spending time developing key financial policies that can influence other teams across the business to be more cash conscious, which could help to reduce ongoing project costs.
- Topic:
- Finance
Maintaining a healthy cash flow has long been a challenge for care homes. Heightened by the ongoing Covid-19 pandemic, the balancing act required by finance teams in small care groups has only been made more difficult.
- Topic:
- Finance
SMEs are nothing if not resilient, and it seems that in spite of the challenges they’ve faced recently (or perhaps because of them), they’re not just open for business but have their sights set on growth too. According to the Federation of Small Businesses (FSB), expansion is now on the cards for more than half (53%) – and to realise their plans, they’ll need to build their teams.
But finding people with the right skills can be difficult for SMEs, who don’t have the big budgets to compete with larger firms on salaries and benefits, nor the resources to invest in high-level recruitment methods. In fact, staff and skills shortages were cited as the biggest challenge for 27% of 1,000 finance professionals we polled for our recent report, Financial healthcheck: Alleviating your pain points in 2021.
The reason for this concern is clear: finance, like any other team, cannot support the business to grow unless they have talented people. But while salaries and other benefits are important, there are other steps SMEs can take to make their workplaces more attractive.
- Topic:
- Finance
The UK’s e-commerce sector is one of the most vibrant and developed in the world and, not surprisingly, many online retailers saw dramatic growth during the pandemic. Government figures reveal that online sales reached an all-time high in November 2020, when they accounted for 36.4% of retail sales in the UK, before peaking again in January when the country was in lockdown.
- Topic:
- Finance
The opportunities for how businesses can change the way they work have been there for some time now. This change has been brought about largely by the proliferation of technology, which is creating new possibilities for businesses, and evolving attitudes, as many businesses priorities have shifted to the likes of wellbeing and employee engagement or challenging long-established business models to improve efficiencies.
- Topic:
- Finance
