Quality small business finance can literally be the difference between sink or swim for organisations. Naturally, courses designed to build resilience and develop business performance like the Help to Grow: Management Course focus on this area so that lack of financial knowledge is not the cause for failure.
We have asked three of our Help to Grow: Management alumni, who specialise in accountancy, to give us their top tip to help you keep your finances on track.
1. Adopt digital tools
The right tools can benefit every area of a business. Shaima Todd, Partner at Mirandus Accountants, encourages those concerned about finance in their small business to focus on adopting the right finance management systems.
Shaima says: ‘As a business owner you must wear many hats to develop and grow your business, digital adoption is a game-changer when it comes to managing your small business finances. One top tip I cannot stress enough is to digitise your financial admin.
‘It's not just about keeping up with the latest technology; it's about boosting your efficiency. By leveraging digital solutions, such as accounting software and online banking, you can streamline your day-to-day finance admin processes.’
Shaima adds that by using tools that give real-time insight into financial health, informed finance decisions can be made in a timely manner.
The efficiency derived from digitalisation saves precious time and reduces the likelihood of errors that can occur with manual record-keeping. Technology has been a huge aid to business leaders bogged down by admin enabling them to free up time to focus on strategic thinking. In fact, business insurer Superscript found that 88% of business leaders said that technology helped make their business admin (including financial management) easier.
2. Plan for the future
Digital tools allow small businesses to begin looking into the future, but it is essential to develop a tangible plan. This is the advice of Rebecca Dean, Director at Unico3, she comments that business is always changing and ‘being prepared and planning for change is one of the strongest moves a business can make. It can even be an advantage as a development tool.’
Once you have a plan of where you want your small businesses finances to go, you can more effectively manage a business and the people within the organisation. In addition, a structured plan also helps mitigate risk, set KPIs (key performance indicators), and enables you to be prepared for unexpected changes.
Dean summarises: ‘The key is to always plan ahead, and do not be afraid of change, they are both vital things that every business must do to grow and both running themes in the Help to Grow: Management Course.
‘During the course, the change cycle section really helped me see change as an opportunity and develop a coaching leadership style, which is sometimes exactly what is required to support everyone and implement progressive changes successfully.’
3. Keep on top of bookkeeping practices
The last word goes to Brad Walker, Director of Adaptive Accountancy, ‘the foundation of all critical financial management practices, and my top tip, is to have accurate and timely bookkeeping information. It really is a case of nailing the financial basics.’
For Brad, the importance of bookkeeping practices for SMEs (Small to Medium sized Enterprise) was demonstrated by the Help to Grow: Management Course: ‘We developed a Growth Action Plan from scratch, but my existing accurate budgets and forecasts empowered me to scrutinise each stage of growth, prompting strategic inquiries about organisational structure, recruitment needs, and potential bottlenecks.’
Brad suggests the implementation of monthly management account reviews to help with bookkeeping practices. He also comments that reviews ‘can offer a profound shift for many small businesses, granting the ability to retrospectively analyse past performance while simultaneously strategising for the future.’
By regularly reviewing your bookkeeping, you have oversight of revenues and profits, and as a result have an accurate picture of key performance indicators (KPIs) such as "Revenue per employee," "Monthly recurring revenue," and the traditional yet indispensable "Total Revenue" and "Total Profit.’
With this visibility in mind, Brad concludes: ‘My foremost recommendation for effective small business finance management has to be to maintain meticulous bookkeeping practices.’
The impact of Help to Grow: Management
The Help to Grow: Management Course informs small business leaders from a vast array of industries about how financial data can help leaders make better decisions and monitor growth. The course includes a 2-hour module dedicated to finance and financial management. During this session, you will cover:
Using financial data to make informed decisions about future operations including identifying relevant financial metrics for monitoring growth and productivity.
Understanding the importance of cash flow forecasting in managing crisis and recovery.
Considering options for financing growth both internally and from external sources, and being aware of where to source information and advice
As a result of the management tools taught in the course, 91% of business leaders reported greater confidence in managing their business 6 months after completion.
You can find out more about the Help to Grow: Management course here.
Do you want to grow your financial skills?
With 60 business schools around the UK, there will be a Help to Grow: Management Course starting near you soon. Don't miss your chance to register.
