Dec 03, 2018 / News

Business Consulting

Financial Awareness - Vital to the growth of small business

The better you understand your business, the easier it will be to make more money. 

Management decisions rely on a sound understanding of the financial implications for a business. If business owners fully understand and interpret their numbers, they will have a strong foundation on which to grow their business.

Over recent times there has been a widespread movement, often led by governments, to increase the financial awareness of the public. Websites and online calculators or tools have be developed to help individuals manage their own money, plan for the future and achieve their financial goals. In the midst of this movement, many small businesses continue to not reach their potential due to limited financial awareness in their business. 

Financial Awareness Coaching

Many business owners are starting to reach out to their accountants and other experts to develop their knowledge and coach them through the process of upskilling in this area. Coaching is a great starting point to gain confidence and important business knowledge to successfully lead and manage your business. It is also helping many businesses to identify issues or problems and address them quickly and effectively. The level of financial awareness required can differ vastly based on the type of business involved, but the development is often needed in:

• Understanding of key financial reports and accounting concepts
• Reporting on cashflow and profit
• Customised reporting to meet the specific needs of the business
• Identifying weaknesses and areas to work on 
• Monitoring income and expenditure during the year
• Finding automation options to save time & money

Software Solutions

This coaching is often done in conjunction with software solutions that simplify financial reporting and management, and allow business owners to still have time to be in their business. The future of accounting sits in the cloud, which is a platform used to make data and accessible online anytime, anywhere, from any device. This gives real time access to financial information from any internet connected device. There is no longer a need to wait for financial statements to be prepared at the end of the year to truly gauge performance. These systems offer multi-user access which allows easy collaboration across businesses, both internally and externally with advisors.

Benefits of Increased Financial Awareness

Businesses with a greater understanding of their finances, and the ability to track these quickly and efficiently have more time to develop and grow their business, they also:

• Make better informed decisions
• Identify issues faster
• Can manage and monitor cash flow well
• Receive reports that capture the right information, quickly

Get in touch with Grantley Stevens or your local Nexia Edwards Marshall adviser for further information on Financial Awareness Coaching or Software Solutions.

The material contained in this publication is for general information purposes only and does not constitute professional advice or recommendation from Nexia Edwards Marshall. Regarding any situation or circumstance, specific professional advice should be sought on any particular matter by contacting your Nexia Edwards Marshall Advisor.