New online tools like web-based accounting software can remove the headache from annual business planning for small and medium sized businesses.
Many SMEs are coming up to the time of year they dread the most, time for financial and business planning. Good planning is absolutely fundamental to developing and building any business, and identifying new opportunities and risks, so why do so many small businesspeople struggle with it?
There are a number of reasons. First, it takes a lot of time, time that could be better be spent, so it seems, attending to the urgent day-to-day business of the company. Secondly, for many entrepreneurs, the world of accounting is boring and difficult, and is something that they would rather put off until tomorrow.
Of course, no successful business can put off planning indefinitely. The good news is, there is a new class of web-based accounting systems available now which should greatly ease the concerns of SME owners when the time for their next business plan comes around.
The idea behind web-based accounting software is that, rather than running and administering an accounting application on just one computer in the office, businesses access their accounts online. This kind of online bookkeeping software holds a number of key advantages when it comes to business planning. First, leading online accounting software products, such as Xero, are designed to be very easy to understand and use, even for non-specialists. They are able to produce reports, graphs, and summaries which allow a business owner to understand the current financial situation at a glance.
Next, web-based accounting software is a great tool for businesspeople who want to collaborate in their planning with partners, investors, board members, consultants, or accountant who are based in other cities or countries. Of course, the very fact that anyone who needs to can view the accounts online, means that planning and analysis can be done where and when time allows.
Next time the planning cycle rears its head, businesses should invest in online accounting software as a tool to facilitate collaboration, analysis, and planning.
