Many small businesses do not have clearly defined processes in place in order to manage their financial health and are putting themselves at unnecessary risk by failing to adopt adequate financial management systems.
Commenting, Gerald Irwin of Sutton Coldfield based Licensed Insolvency Practitioners and Business Advisers, Irwin Insolvency said “Good financial management should be the bread and butter of every business, especially during a tough economic climate. It is essential that businesses understand where their money actually is, that they follow up on all unpaid debts and regularly track profitability otherwise future development and growth will be nigh on impossible.”
“Indeed, there are many thousands of small businesses in this country who do not use an accountant to prepare end of year accounts. These businesses seriously risk the possibility of filing incorrect data and paying incorrect tax which could seriously damage their financial health. As the country slowly pulls out of the economic downturn and things are beginning to take on a brighter view, now is the time for all small businesses to address their financial health positions before it is far too late to help them,” added Mr. Irwin.