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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

Financial issues that keep you awake No.6 – Up-to-date bookkeeping

I’ve been reading a report from KPMG Small Business Accounting about how finance-related concerns affect business owners’ sleep patterns.

 

From a survey of 250 business leaders, the report looks at the issues that affect them the worst, the approaches they’ve taken to get a better night’s sleep, and the impact it’s had on their business.

 

It’s quite worrying to read that 53.6% of small business owners have finance-related worries that stop them getting a decent night’s sleep on a regular basis.

 

More than one in eight believe that such concerns interfere with their sleep most nights.

 

The report makes it quite clear what the main areas of concern are though.

 

Luckily they’re also issues that can be solved quite easily.

 

In true Top of the Pops style I’ll work through them in reverse order, starting (unusually) at number 6…

 

6. Ensuring bookkeeping is kept up to date

 

24.8% of the business owners said this was a former concern, now resolved.

 

14% said it was a current concern they’re working to resolve.

 

19% said it was a current concern, but not addressed yet.

 

Some people believe that bookkeeping and accounting are the same thing. Not quite – bookkeeping is keeping an accurate and complete record of all transactions, while accounting involves analysing those records.

 

Bookkeeping can be work intensive, which is why it’s probably an issue for small business owners who have to do everything themselves.

 

It’s easy to feel swamped, and if you’re having to make a product, market it, sell it, put in the hours in a shop, visit clients etc. you may never have the time to sit at a desk with a calculator or spreadsheet and work out your incomings and outgoings.

 

You’ll work longer hours, into the night, and… lose sleep.

 

It’s an easy job to outsource though. You don’t necessarily have to do it yourself.

 

And there’s loads of people out there who’d do it for you.

 

It’d be one less thing to worry about.

 

Some of them can be found here:

 

https://www.madenotborn.com/accountancy/

 

It might just help you sleep better.

 

David