Financial issues that keep you awake No.4 – Not knowing how your business is performing

According to KPMG Small Business Accounting’s recent survey, the 4th most common financial issue that affects the sleep patterns of business owners is not having an up-to-date picture of business performance.

 

Luckily, this seems to be a problem that a lot of the business leaders have been proactive in trying to resolve.

 

2.6% of the 250 respondents said it was a current concern they hadn’t addressed yet.

 

However, 22.6% had it down as a concern that they were actively trying to resolve, and 24.1% said it used to be a concern that is now resolved.

 

Ultimately, even though not knowing the current state of your business’s performance is a big problem experienced by many, it is an issue that seems quite easy to address.

 

The worry would come from either sitting at home, or up in bed, not knowing what the exact income from your day’s trading was.

 

Even worse, you may not know what your outgoings were.

 

If you’re absolutely convinced you’re not breaking even, or if there’s a nagging doubt at the back of your mind, then you’d struggle to sleep.

 

You could of course call your accountant, but that’d have to wait ‘til morning. It doesn’t help your cause at that exact moment in time.

 

Which is why the remedy for this problem is, as the report states; “Deploying technology”.

 

Namely, the technology is cloud-based accounting software so you can access your business accounts at any time.

 

“Lack of up to date management info [was a concern]. Switched to cloud-based system; was very successful.”

 

And;

 

“Using a programme like Xero has been very successful.”

 

In fact, bringing in cloud-based accounting was the most effective remedy overall, with more than half (54.5%) of respondents deeming it to have been “extremely” successful – with a further 24.1% stating that it has been “quite” successful.

 

The statistics speak for themselves.

 

If you need it too, you can find a list of recommended accounting software programs in our Guide to Accounts for Small Businesses here:

 

https://www.madenotborn.com/courses-money/

 

David

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