Every company depends on cash flow to support its operations and stay open - but this factor can be a significant challenge for small and medium enterprises (SMEs). With the right accounting software for small businesses, leaders can better plan their cash flow and even discover ways to free up existing funds for better investment.
According to a recent survey by Albion Ventures, 21 per cent of SMEs find cash flow to be a major challenge for growth. Concern over this factor was especially strong for companies that were looking to expand their businesses, indicating that the challenge often holds enterprises back from making the most of optimistic prospects.
Often, small business might have trouble acquiring funding from externals sources, such as loans from banks. They could face disadvantageous rates or miss out on timely opportunities because they don't have cash funds available at the right time. In fact, research by AXA Business Insurance revealed that only 12 per cent of SMEs accessed funding in the first two quarters of this year, and many businesses use credit to assist their cash flow struggles.
Although these studies polled UK companies, small businesses in New Zealand face many of the same obstacles. If you're having trouble maintaining a consistent cash flow or having funds at the right time for your bills or investments, you might want to consider accounting software such as CashManager by Accomplish.
This program empowers business leaders with budgeting tools so they can more accurately allocate their cash flow. In addition, they can forecast their cash flow to gain insights that allow them to make more strategic business decisions.
By analysing cash flow, expenditures, sales and other data, you might be able to cut unnecessary spending, thus freeing up cash for important investments and achieving greater control over your finances.