For small companies looking to expand, it is essential to get the books straight before putting plans in motion. A professional approach to achieve this is always recommended, with finance & accounting outsourcing a sensible move.
When introducing plans to expand there are many other important financial considerations too. With British business being urged to grow internationally to support the economic recovery and hit government targets, these key tips can help provide a balanced approach.
Outsourcing for investment
To expand successfully, most companies will need to secure investment. With focus directed to day-to-day business, SME owners can often neglect the basics such as budget, turnover and cash flow.
Essential to the fitness of the business, outsourced accountants can take charge of these activities to help with any credit applications.
Outsourcing for confidence
The preparation of the books by a chartered accountant is important too, with a recent industry survey revealing that major lenders are more likely to want the assurance of professional qualifications.
An outsourced team will have the qualifications, expertise and knowledge needed to support any loan application.
Negotiate to accumulate
One area in which an outsourced accountant can really apply his or her knowledge is in looking at areas of the business that are not performing well, or even being a duplicate of efforts. Much the same process can also be applied to interrogating the financials for deals with suppliers and other contractors.
Their expertise can also help negotiate better and more competitive deals with business partners in every area. This could also be extended to negotiating better terms with the lender, either directly or indirectly by providing advice and guidance.
Less than half export
More power to the bow of small business could come in the shape of the British Chamber of Commerce (BCC). Speaking at the start of the International Festival of Business in Liverpool, the DG of the BCC, John Longworth, said:
“We need to make it more attractive and easier to export.”
With less than half of British firms looking at international expansion, Longworth continued to say that they need to “look beyond our shores” to hit government targets, close the trade deficit, and increase their own revenues.
Easing the lending process to small business could help grow the number of firms exporting too. However, Longworth went on to say that the government needs to do more, suggesting the introduction of tax incentives and helping with trade show attendance.