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When did you last change your car?

old_rusty_carThese days most business owners will sign up for a 3 or 4 year deal on a new car – gone are the days of buying one outright and trading it in after 3 years. This way you can minimise the risk of losing value, reduce the time involved in trawling round dealers looking for the best deal, make sure you have a reliable motor and manage cash flow better. So why not invest in your business technology and financial systems in the same way?

As a business owner would you drive to business meetings in a 15-year-old car that you’re not sure will get you there without breaking down or overheating? No, I imagine not. Yet so often you’re more than happy to let your business financial systems fall behind the times?

Using the right business financial systems

Whether it’s keeping sales records on a spreadsheet, continuing with old machinery or maintaining invoices in lever arch files collecting dust. In the last few years, I’ve seen businesses with turnover of £8 million running on SAGE which they’ve used for over 30 years and their system is slow and clunky, worse still was a £2 million turnover business having records kept in a Guildhall cash book (and a sales day book, purchase day book and petty cash book to boot) and another company running a desktop package when the business owner was a global traveller so was faced with limited access to financial information to make business decisions.

Keep up with the times

A good business will be investing in modern technology, using the latest methods, keeping up to date with technology and processes. Whilst having a solid foundation is helpful being able to keep up to date is essential – moving to a cloud-based accounting package, utilising OCR methods for processing transactions and having the ability to look ahead to help the business develop. It’s also good to be up to date and be ‘sale ready’ – the value of a business that has up to date systems is much greater than one which needs big investment in bringing it up to date.

So the next time you get into your new car and drive to work ask yourself “Is my financial software and processes as up to date?”

A FinanceHead can drive (excuse the pun!) your business finances and systems in the right direction. They each have bags (you see I did it again!) of experience working with SMEs and will be able to identify whether you have the right software and processes to support your company growth and saleability. To make an initial enquiry please contact Michael Cartwright who navigates new clients.

Martyn Keates
FinanceHeads Director and Member

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