Business Advisors, Accountants and Bookkeepers Poised to Help Businesses Survive
As business conditions continue to tighten, small and medium businesses (SMBs) are facing significant challenges.
High interest rates, inflation, and a wave of business failures are putting many at risk of collapse. However, business advisors, accountants and bookkeepers have a critical role to play in helping SMBs navigate these turbulent times.
According to Paul Robson, CEO of MYOB, a lack of fiscal management skills is evident in many business owners, leading to significant issues, particularly after six months of operation. Robson notes several key areas of concern, including poor understanding of supplier payment terms, unfamiliarity with credit terms, ineffective debtor management systems and failure to plan for Australian Taxation Office (ATO) payments.
These issues have been further underscored by the Australian Small Business and Family Enterprise Ombudsman, Bruce Billson, who has raised alarm over the ATO's pursuit of tax debt. Billson also highlighted a 3.5% deterioration in business conditions over the past year and a concerning decline in small business contributions to the economy, with their share of economic activity dropping from 40% in 2006 to just 33% today.
Despite these statistics, SMBs can take steps to regain control and build resilience.
A trusted and skilled advisor can be a lifeline for these businesses by providing essential services such as:
Preparation of realistic business plans
Crafting budgets and cash flow forecasts aligned with business objectives
Structuring payment times with key suppliers based on realistic cash flow
Implementing effective debtor management systems
Creating systems that provide daily key financial information
Producing weekly performance reports with key performance indicators
Preparing monthly profit and loss statements and budget variance reports.
Additionally, advisors can offer virtual CFO services, act as a sounding board for strategic decisions, and provide tailored advisory services, such as a 52-week business enhancement system, to address the knowledge gap many SMBs are currently facing.
Business owners struggling to keep afloat are urged to seek professional advisory services to navigate these challenges and rebuild stronger, more sustainable enterprises.
Galvanise your business for resilience in the current climate. Contact Nathan McGrath on 02 6686 3000 for an obligation-free discussion on how Collins Hume can help you achieve a better performing business and lifestyle.
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