SME News March 2018

SME NEWS / Q1 2018 9 How Technology Can Revolutionise SME Budget Planning Processes that could impact your sales, and budget. The key is to become involved with the peer groups for your industry to gain perspective for your market. Match your Headings Once you have all of the information to hand and have used the relevant tools to do so, you can work to create your realistic budget plan. It’s also important to note that you should be able to access the budget on a daily basis to make any necessary amendments. However, regardless of whether you are utilising data from your company’s previous sales and expenses, or from your competitor’s accounts at Companies House, you try and ensure your budget income and expenditure subheadings correspond exactly with your company’s management accounts. This is achieved by using management accounting software, which should be high on the list of priorities for any business, to prepare the budget draft. Cloud based systems, such as Xero and Quickbooks, have excellent tools for this process in your budget plan, at relatively low costs. Once these are in order, you can compare your budget with other costs at a quick glance. In turn, you can respond to any changes or market trends. Automation Automation is one of the hottest buzzwords in business today. The dramatic technological advances for corporations over the years have allowed for a number of tasks to be automated. Automation improves inventory control, scheduling and accounts. This has allowed companies to run more efficiently and aid with budget plans. You’d be hard- pressed to find organisations that haven’t already automated their accounting systems, and it is something all businesses should prioritise. Without automation, the lack of accuracy leads to problems down the line. Budgets cannot be produced with incorrect assumptions. Seek Advice If your business is already established, speak to the staff with financial responsibilities within your company, before finalising your overall budget. Day-to-day knowledge of company accounts should provide more information on targets, costs and production. Along with your company’s historical information, this data will help produce a comprehensive budget plan. If you are still unsure, as a startup business, for example, you must seek advice. Financial advisors and industry peers - from your business peer groups - can help review your business budget plan and the market as a whole, identifying areas you may have missed. The services will cost your company, but they could be the difference between a successful future and failure. A budget plan is essential and ongoing, providing your SME with security and the chance to grow within your industry.