Spotlight on… cloud technology
As you prepare to take your first steps towards putting your business idea into practice and setting up your new company, committing to new technology may not be the first thing on your mind. I would suggest it should be very high on your list however. The fact is, it’s almost always easier to introduce technology when your business is smaller. Introducing systems which can then grow with you as your business expands, removes the initial administration demands on your time, setting you up for efficient management of the business finances right from the off. A good adviser should always discuss digital first principles with you early on and work to identify your current processes and how they can adapt to the technology available. Taking this approach also means that you can make appropriate decisions on hiring and reporting processes as your company develops. Recruiting roles to work alongside your existing technology at a later stage is far easier than replacing your people with systems further down the line. The key is to look at value, rather than cost alone. I’ve seen many new businesses concerned about incurring costs, but then spend hours of their potential working time on lengthy, manual processes and data entry in order to keep up. More often than not, the value of the time lost to admin when you could have been working will be far more than any outlay you spend on cloud technology for your business. It will also help keep your adviser fees lower, as your income, costs and tax figures will be automatically updated, saving your accountant time going through your pile of papers. But it’s not just behind the scenes where you will see the benefits. I firmly believe an effective use of cloud technology will also improve your interactions with customers. An online presence where customers can contact you, make appointments, view their orders and make payments, gives your business a more professional status – something valuable when starting out and gaining traction. As well as all this, being able to invoice your work digitally not only gives you a better record-keeping solution, it also gives customers a much faster and easier way to pay you. Creating barriers and time delays in producing quotes, sending bills and enabling payments can cost you repeat business with those customers looking for a quicker, more modern transaction. Last but not least, in my experience, embracing cloud technology really can make you more informed as a business owner. Staying on top of your cashflow and planned income is so valuable in helping you understand and prepare for your tax liabilities and potential dividend options. By integrating other functions, such as payroll, inventory management, appointment booking and staff timesheets, much of the hassle is removed. This means that your time is not being wasted on admin which can often cause a loss of momentum and enthusiasm. In an uncertain future for business, with the need to adapt to remote and flexible working practices and evolving customer demands, having a real-time, accurate picture of your company’s finances could be crucial, both for your own plans and the effectiveness of your adviser’s guidance.
Philip Menown // Financial Technology
P14
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