Management information in the 21st Century

Running a business in the 21^st century is exciting and full of opportunity.  Yes there are many threats around us but there are also huge opportunities for those businesses that innovate, improve and challenge the status quo.

Technology has to be one of the biggest areas of opportunity, as well as a threat.  We’ve already seen the transformational effect technology has had on industries that have been around for decades – whether it’s how we consume our music or how we go house ‘shopping’.

I come across many businesses and find that two attributes are usually present among those that are the most successful in terms of their profitability, ability to generate cash (not the same thing as profitability) and build their capital value.

The first is a strong management team that understand the business they’re in, who they serve and why they’re doing it.  The second is the enthusiasm and determination to embrace new ways of doing things – perhaps things that the traditional players in the industry are just not awake to.  This takes time, planning and investment but the rewards are huge, especially if a culture can be created so that it happens throughout the organisation.

Focus on improving systems is often (and usually quite rightly) on areas such as operations and sales.  However what’s the point in utilising state of the art technology and processes throughout the business if you leave your finance systems stuck firmly in the 20^th century?

Your finance systems should drive and support your business critical decisions – not be left to merely prepare the VAT returns and do the year end accounts 6 months after the year end.

When it comes to understanding the health of your business at any given time, knowing how much cash you have coming in and going out, and whether you can cope with sudden, perhaps unexpected, changes has never been more important.

We would tell all our clients that to put yourself and your business in the best possible position, you need to know exactly where your business is, today.

There are a number of good quality finance systems for small and medium sized businesses on the market today.  We particularly love the ‘real time’ dashboard that comes with Xero – an online solution that is taking the world by storm.  It is easy to integrate, simple to use and can have an immediate impact on how you view your business, allowing you to turn challenges into opportunities.

In short, whilst it is not the only product available, we as a firm recommend it, because it underpins our belief that information is king, but only if it’s the right information. I am firmly of the belief that regular up to date management reporting is critical to any management team that wants to grow their business and compete 21^st Century Style.

To learn more about how your business can start benefiting from the best management information call me on 01628 770 770 or email me [email protected].

If you want to know what your finance systems should be able to do for you click here for a quick quide.

Free appraisal
Want to learn more about Xero? We can give you a ‘Free appraisal’ and a realistic project time frame according to your circumstances. There’s no commitment….  Click Here