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News: Almost One Third of SMEs Struggling to Keep Track of Their Finances

7 May 2014

Research released by Kashflow revealed how a quarter of small businesses are still reluctant to take on employees due to financial concerns.

According to the research 25.8% of small businesses say they are reluctant to hire as it might complicate the payroll with 24.7% of business owners admitting they are being kept awake by financial concerns.

The research highlights how many SMEs and business owners still consider the UK economic recovery to be in a fragile stage.

Worryingly, the study of 500 small businesses also found that 31.2% of them are finding it increasingly difficult to keep track of their company’s money, with the same amount adding that if the bank was to recall their loans tomorrow then they would be at a loss of how to pay them.

Oli Randell, one of Local Business Partners part-time FD’s added, “We discussed last week the importance of having a business plan and why it should not be overlooked. This is simply another case of business owners trying to juggle too many priorities. They need to be supported by financial professionals who share the responsibility and work with them to ensure the company is run profitably, allowing confidence to build and the company to grow.”

The important role that a part-time FD can play is to assist you and your business in going forward. Much like the owner, they are forward thinking and this is where the focus of a true FD lies. It is ultimately a creative role, shaping the future.

Also, unlike somebody in a full time role, a part-time FD does not come attached with a large price tag and bonus, or benefits such as a company car, but does arrive with bucket loads of knowledge and expertise.

There are some common triggers for hiring an FD rather than an accountant, such as, the business plan needing significant revision, the business needs to seek external investment or the quality or sophistication of management information is just not good enough.

If you want to find out more about what role a part-time FD could play in your business then head to our website and read our 5-minute briefing – ‘Do You Really Need an FD?’ – Checklist.

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