At SME Financial we often sing the praises of Xero. This isn’t just because it is pretty, it is because we see daily how Xero can help our clients run their businesses more efficiently and in turn more successfully.
Earlier this year Xero released the Business Performance Dashboard. The dashboard is a new way of giving you, and us as your accountants, better visibility of how your business is performing.
We think this is a fantastic tool and if you take a look at the top 20 reasons for start-up failures and you’ll see that many of these problems can be identified by a simple metric.
Of course simply having a metric such as a gross profit percentage in front of you isn’t going to solve any problems but it will certainty make you aware of them. With both of us able to see the basic data in one easy glance, it becomes easier to work together to tackle issues and design a sustainable business strategy. Our monthly advisory board meetings sound very formal but the practicality is they gives us the opportunity to review your results in real time and solve issues as they arise, rather than 12 months down the track. These meetings bring an independent perspective to the business as well as the experience of hearing how hundreds of other businesses operate - some really good and others not so good.
Thinking you can do it all yourself and forging ahead with fundamental errors in pricing or no idea how to grow, is a quick way for SMEs to find themselves in hot water.
That’s something larger, more established businesses know well. A study of over 1,000 Australian SME owners found that bigger companies (turnover $1 million plus) and older business owners were “more likely to consider their accountant as their most trusted adviser”, for both day-to-day accounting and business planning.
If you are interested in hearing about how a monthly, bi-monthly or quarterly meeting can add value to your business, talk to one of the team at SME Financial.