14% Of Small Businesses Not Using Accounting Software Fail. What's Managing Your Finances?
One of the contributing factors to your business success – or – failure – is how well you manage your finances. 58% of successful small businesses use software to manage theirs.
According to a recent report compiled by Cloud Accounting Platform – Xero™. The Report, titled “Make or Break? An investigation into what separates successful entrepreneurs from those who fail”, 14% of small businesses who did not use software to manage their finances failed.
As an Audit Partner for over 20 years, Hayley Newton-Holroyd, Head of BDODrive at BDO South Africa, decided to search for new ways to help free SMEs and start-ups from financial and tax admin burdens.
Freeing SMEs to grow their businesses
“When I was introduced to Xero™ and saw the benefit it would have to SMEs, I knew we had to introduce our clients to the benefits of real-time financial information in the cloud and offer a tailored solution that would not only ease their administrative burdens but also add insight into their business through practical and uncomplicated advice without the heavy cost tag usually associated with these types of services.”
In fact, Xero MD EMEA – Gary Turner recently explained at a Roadshow in South Africa that almost a quarter of invoices are paid late simply because businesses are disorganised.
“Understandably,” continues Newton-Holroyd. “They are not Accountants or Tax experts, they are experts in their business. They need to be back in the driver’s seat of their business while a professional manages the ‘engine’.”
The report also found that a third of successful entrepreneurs say they have turned to a mentor or support group for advice about their company, compared to just 14% of respondents who ran businesses that had to close. Of those owners who cited a business issue as a reason for failure (as opposed to a personal issue), a whopping 65% blamed financial issues.
The technology advantage
“This echoes the benefits of having a positive relationship with an accountant or bookkeeper, to help implement technology to stay on top of financial management,” she says. “With BDODrive we combine people, technology and insight to help your business thrive. We become your trusted business adviser.”