This article looks at the most common financial challenges faced by SMEs and how improving your financial confidence can make a real difference to your business. It demonstrates how Kaizens solutions are simple, easy to understand and very effective.

Why financial confidence matters

Many business owners believe they struggle with their financial accounts. But what you need to realise is that financial confidence isn’t about being good at maths — it’s about understanding what your figures are telling you and knowing what you need to do next.

Research, carried out by Xero, (with UK SMEs), shows just how common challenges are, it found the following top five things which SMES struggle with:

·      36% don’t know if they made a profit last month

·      51% struggle with day-to-day cash flow

·      33% don’t claim all eligible expenses

·      44% are caught out by unexpected costs

·      23% aren’t setting enough aside for tax

The good news? Every one of these challenges can be overcome with clear, simple systems and the right experienced support. Lets look at these identified challenges one by one.

1. Knowing if your business is actually profitable

Many owners rely on their bank balance as a measure of success — but that doesn’t always show the full picture. Modern accounting software can provide you with clear, simple profit reports that show exactly how your business is performing. When you understand your profit position, decisions around pricing, staffing, and growth become much easier.

How Kaizen can help with this - We can help set up straightforward profit reports which explain what the numbers mean — in plain English — so you can make your decisions with confidence. We can even help you to model the outcomes so you can see what should happen because of your decision making.

2. Getting control of cash flow

Even profitable businesses can run into trouble if cash flow isn’t managed properly. Understanding who owes you money, when payments are due, and where cash is coming from and going to allows you to act early instead of constantly firefighting.

How Kaizen can help with this - We help you monitor cash flow, spot potential shortfalls early and create practical improvements and reporting that keep your business moving smoothly and your relationship with your bank on an even keel.

3. Claiming expenses and reducing unnecessary costs

Many SMEs miss out on legitimate expenses simply because record-keeping can feel overwhelming. Going digital and keeping records up to date makes VAT, cost tracking and financial planning much easier. One big benefit is it often reveals savings you didn’t realise were potentially there.

How Kaizen can help with this - We help guide you on what you can claim, how to record it properly and where opportunities exist to improve efficiency and reduce costs. Leading to increased profitability.

4. Avoiding unexpected costs

Most business costs shouldn’t be a surprise to the business managers and owners. With a little forward planning, expenses such as rent, VAT, supplier invoices, and loan repayments can be anticipated and managed with foresight, instead of reactively.

How Kaizen can help with this - We work with you to plan ahead, map expected costs and look at different scenarios, so your business stays in control and doesn’t run out of money.

5. Setting money aside for tax

Tax bills can become stressful when money hasn’t been set aside in advance. Simple planning, using banking tools such as separate tax pots can make payments far more manageable and remove last-minute pressure.

How Kaizen can help with this - We help you calculate realistic amounts to put aside based on your day-to-day cash needs and how your business actually operates. By integrating your tax payments with your cashflow needs we help you overcome deadline payment nightmares reducing the chance of fines etc.

Working with Kaizen

Our goal isn’t to make you dependent on us. We work alongside you to put the right systems in place, help you understand your numbers, and build your confidence. As your understanding grows, our role shifts to ongoing support and advice when you need it!

Ready to feel more confident about your numbers?

If you want practical financial support that helps your business run more smoothly and grow with confidence, email info@kaizengroup.uk or telephone us 01482 772261 to book a free, no-obligation consultation today.

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