Countless unexpected issues can pop up for SMB owners that create seemingly overwhelming challenges – many of them financial in origin. The most common issues faced by SMBs are: maintaining a positive cash flow, not getting accurate reconciliation reports on a monthly basis, and securing funding for the company’s growth. Fortunately, SMBs can easily manage these issues through with a solid financial process and reporting.
In this blog, we’ll talk about the 3 biggest financial issues that SMBs face, as well as tips to help them manage these issues.
- 1. Poor Cash Flow Management
Even profitable businesses can fail due to improper cash flow management. The major reason this can occur is that there is no proper or regular tracking of the revenue stream coming in against expenses going out whichultimately means that the business owner does not have complete visibility into the financial health of their business.
To minimize this challenge, SMB owners should make sure they get paid on time from customers, know when they need to pay their suppliers to take advantage of discounts and design cash flow budgets in advance that they manage to and review on a regular basis.
- 2. Managing Payroll
Payroll is a truly complex process that SMB owners usually spend long hours on checking the accuracy of recorded hours, calculating salaries and deductions, and complying with government rules and regulations around hours and wages. Instead, SMB owners should be utilizing these hours in growing their business.
Outsourcing to a payroll provider is the best way to save time and focus on more strategic activities required to grow the business rather than getting bogged down in the details of processing payroll.
- 3. Faulty Financial Reporting & Late Statements
When any SMB owner is unaware of their current financial position that is the moment they are at the greatest risk for failure. If the needed bookkeeping tasks are not completed in a timely manner, or if the owner is constantly getting reports late, or the delivered reports have a large number of inaccuracies, the business has increased risk for heading in the wrong direction. Additionally, these things can also hurt the company’s credibility with the board of directors, banks or investors.
SMB owners must have access to accurate and timely financial reports and monthly reconciliations to avoid issues with their financials statements, enabling them to make strategic and profitable decisions for their business.
Whether SMB owners are facing an uncontrolled financial reporting situation, need support with their payroll processing, or are facing challenges in accounts receivable and accounts payable, Quatrro can help SMB owners through its cost-effective finance and accounting outsourcing solutions and full range of other affordable business support services.