As 2020 comes to a close, there are some fairly big lessons most business owners will take away from the past several months of pandemic disruption and the resulting recession.
It has been, and continues to be, a pretty tenuous time. But there is one change you can make to your business that will put you on a steady footing now and into the future.
By ATB Partners
Have you considered outsourcing your finance department?
This makes so much sense for small, medium and family-owned and operated businesses – and here’s why.
Ensuring stable and future-proofed finances is the most critical part of staying in business! It’s doesn’t matter how great your product is, how awesome your people are, how fantastic your customer service is … if you’re continually running by the seat of your pants financially, then you’re forever going to be out of breath catching up. It’s stressful to say the very least.
Now… for the sake of argument, let’s add to that the fact that Australia has one of the most complex tax regimes on the planet … And, if you’ve accessed financial assistance for employees via JobKeeper over the past several months, or received a Covid-related business grant then your accounting and tax reporting just became even more complicated. And, ATO audits are increasing. You don’t have to have done anything ‘suspicious’ or ‘wrong’ … audits are simply becoming more common. And that’s when it really helps to have experts in your corner.
It’s also worth mentioning that the current recession is likely to be around for awhile and within that, we’re all navigating a new ‘normal’.
So ask yourself: How savvy is your in-house team?
At, for example, identifying your high cost areas versus profitable ones? Or looking for opportunities to improve margins? How adept is your team at minimising your tax obligations? Or identifying key risk areas? Does your team know how to protect your business from an insolvent client or supplier? Does your team understand financial planning? Your SMSF?
Being able to undertake basic business accounting and meet compliance requirements, and even automating some of your basic bookkeeping functions is one thing, future-proofing your financial position and growing your business is quite another. And good advice is crucial to both.
Simply put – the lack of experience of your in-house team could be holding you back. When you outsource, on the other hand, you have access to an entire team of professionals across the financial spectrum – specialists who will not only help you take control of your business, and, more importantly, help you plan ahead.
With all due respect to in-house teams, most of which are pretty adept, it’s also a fact that they tend to be time-and-resource limited with what they can achieve.
Often, because they’re busy ‘day-to-day’, they just can’t take a bird’s eye view.
Here at ATB Partners, because we have a dedicated team of accountants, tax specialists, financial planners and businesses mentors we can offer a wide range of services and advice.
Right now, for example, we’re trialling a piece of software that can predict your down-the-track cash flow several months in advance. This is like having a crystal ball, because it gives you an early opportunity to rectify the course, or stay on track.
How great would it be working with someone to help you uncover the most profitable areas of your business. This means, at times like now, when the economy is uncertain, you can focus on the products and services that are going to make you the most money, and let others take a back seat for a while, reshaping and adapting your business plan to survive and thrive in difficult times.
Wouldn’t you say that this kind of in-depth analysis is invaluable?
We’re happy to talk you through the costs of our Virtual CFO service. On the whole it tends to be much more cost effective to outsource – not just in terms of the actual dollars you can save, but in terms of the added value: the ideas and advice, experience and knowledge that we can also deliver.