Being open and honest is important in nearly every facet of life. After all, those who choose to be deceitful will build up little trust with their peers. In the business world, things are no different. In fact, research from The Sustainable Business Council (SBS) found that New Zealand's consumer confidence is directly proportional to enterprise transparency.
The SBS is also launching an online resource in efforts to help small businesses remain as open as possible, which will attract consumers who appreciate honesty from the businesses they deal with.
"What we're seeing is businesses are now regularly being held to account for their impact across the entire value chain - whether that's in a supplier's factory in a foreign country or how the product is disposed of once it has been used," explained SBS Executive Director.
So, while businesses of all sizes need to be aware of how they are perceived, just how important is business transparency?
Assurance
When it comes to accounting practices, transparency and accurate financial reporting equate to assurance, which is felt by everyone that deals with your company, be they consumers or suppliers. Ensuring that company capital is kept in check is made easy with CashManager from Accomplish, and an exacting record of accounts will ultimately lead to better business transparency.
Transparency equals growth
Moreover, when company finances are kept in check and up-to-date, the business is more likely to attract outside investment. Naturally, any party interested in the enterprise will need to be assured that their investment is a savvy one, and accurate accounts will put them at ease.
Consequently, transparency can ultimately equate to business growth. Honest reporting will make the company more appealing, meaning capital can be spent on bettering the business, ensuring it is more sustainable in the long term.