Amongst the various challenges that small business owners face, one of the most important ones is the efficient management of finances. While starting a business, revenue fluctuations are common and owners struggle to have a steady income. Rising manpower costs and spends on technology add to the burden of managing finances better. To smooth up the process, small business owners can follow these financial management tips which will help them to sail through initial finance-related challenges and even help them foresee them. Tapping into the latest technological solutions early will prove helpful and business owners should not ignore them.
1. Cloud computing solutions
The latest reports suggest that an increasing number of small businesses are adopting cloud based finance management solutions rather than traditional desktop services. Cloud based systems provide several benefits:
- Many are free or low-cost.
- These systems allow business owners access to his or her financial data at any time.
- Cloud financial management systems are updated with the latest tax changes and business-related features automatically. There are several systems out there with different features sets, so see which one is right for you.
2. Supply chain management
To efficiently manage supply chain, small business owners should ensure that there is tight supervision in the process and minimize the number of middle men who increase costs without additional benefits. Efficient supply chain management would be more prevalent to B2C. Such businesses should reassess the supply chain process from time to time.
3. Being prepared for risky times
The global financial crisis in 2008 has taught businesses to be prepared for all possible type of risks. As a result, risk assessments should be an integral part of business and finance planning. Small businesses should be extremely careful while managing cash flow and ensure they have a risk strategy in place in case there is any turbulence in the business environment.
4. Go paperless
One can be surprised with the amount of savings a paperless workflow generates. Not only will it ensure cost reduction in the business, but it will also help you do your bit for the environment. Clients love to partner with businesses which have greater awareness of societal and environmental needs.
5. Latching on to BYOD trend
In today’s business environment, smart entrepreneurs are using and promoting the use of smartphones and tablets during work hours to help them complete work faster. An AMI report states that spending money on smartphones in India among SMBs increased steadily. According to AMI’s 2013 India SMB ICT & Cloud Services Tracker Overview, 55% of small businesses and 43% of medium sized businesses currently have BYOD policies implemented. The report also states that SMBs enjoy several cost benefits with the implementation of such policies. These include cost savings on hardware and increased employee productivity as they are able to access their devices anytime anywhere.