Importance of Cloud for SME's to achieve growth

Of all the developments in information communication technology (ICT) over the past decade, cloud computing has been one of the key gamechangers, offering far-reaching benefits for businesses.
A recent report by IDC says that SME cloud spending will grow by nearly 20 per cent the next five years.

The research findings showed that
33 per cent of SMEs are using the cloud for email
33 per cent are also using it for storage and back-up.
Other cloud applications being used include
accounting and billing - 15 per cent,
HR - 14 per cent
CRM -14 per cent By delivering cost-effective, on-demand computing opportunities, the cloud is dissolving the advantages long held by larger enterprises.

By observing the above figures, you would have by now know the importance Cloud computing is gaining among the SMEs.

The benefits it drives are as follows:
• SMEs gain the ability to grow faster and employ more people.
• It offers SMEs in the UK the opportunity to compete with big organizations.
• SMEs can even take head on with competitors internationally like never before.
• It puts employees in control resulting in increased motivation and in-turn, greater productivity.
• Simplifying accounting for businesses and harmonizing workflows and policies to achieve lower costs and higher quality.

Cloud-computing is fast becoming the norm for thousands of businesses across the UK, enabling them to be more agile, flexible and ultimately more productive while at the same time reducing costs and their impact on the environment.
Perhaps it’s time that your business decided to embrace the cloud?
Call corient at (44) 24 76997742 and we will help you take full advantage of cloud computing through our customized offering accounting services for business.

Author: Sachin Lohade is a Chartered Accountant and works with Accounting Firms to improve practice and reduce costs. He can be reached out at sachin@corientbs.com or you can visit www.corientbs.co.uk

Data Management System for SME

Thousands of companies depend on the accurate recording, updating and tracking of their data on a minute-to-minute basis. SMEs use this data to complete accounting reports, calculate sales estimates and invoice customers. In some cases the vendors or workers access this data through a computerized database. In fact there are many proven methods to manage the various data elements. But before that you must have in front of you the set of challenges are you facing. 

Below are the questions a small business should consider asking before trying to solve the data management stumper.

·         What are you trying to accomplish?

·         Who is it for?

·         What do they need?

·         What do you need from them?

 Once you are clear about the above question you have two options to manage it:

      A.    Online Software

There are many softwares available online for small businesses designed to help them to run their operations better, cut costs and replace paper processes. The most popular software packages include accounts, office productivity, email and communications, but nowadays, most business activities can be improved through desktop or web-based applications.

But if you are not a tech-savvy person or if you do not have a trained staff to manage it, no worries, just go for the second option. 

     B.     Outsource it BPO

If internal data management isn’t economical, outsourcing it is an attractive alternative. You will benefit from technology-driven and professional DBMS services at a cost-effective price. We at Corient have helped many SMEs grow by the proper management and processing of raw data into useful information becomes a critical matter. Outsourcing your data management helps you grow faster, as it free-up your time to focus on core business. It also saves lots of time.

At the end, I would like to add one thing, just weigh all the pros and cons before going ahead with any of the above mentioned options.      

Author: Sachin Lohade is a Chartered Accountant and works with Accounting Firms to improve practice and reduce costs. He can be reached out at sachin@corientbs.com or you can visit www.corientbs.co.uk

Importance of Cash-Flow for Logistics Companies

Cash flow is of vital importance to the health of a business. One saying is: “revenue is vanity, cash flow is sanity, but cash is king”. What this means is that whilst it may look better to have large inflows of revenue from sales, the most important focus for a business is cash flow.

A difficult situation

This payment delay creates a dilemma for the logistics company. If they focus on growth and keep signing on new clients, they risk cash flow problems. On the other hand, if they refuse to sign on new clients, they limit their growth. Neither option is attractive.

Solving the cash flow problem

However, cash flow problems can often be solved by taking some simple steps. First, evaluate the cause of your specific cash flow problem. Knowing where the problem originates is critical to solving it.

Often, cash flow problems originate from a combination of things such as poor client selection, infrequent collections follow-ups, or inadequate financing.

The following three steps outline a process that improves cash flow in a way that supports growth.

 

1.Sign on customers who pay quickly

Many logistics companies are eager to grow and sign on new clients as quickly as possible. However, few spend the time necessary to determine if the shipper will, in fact, become a good-paying client. This crucial part of the pre-sales process shouldn’t be left to chance.

 

2. Improve collections

Many companies experience financial problems because they do not have a good collections system. Most business owners find collections work tedious and prefer to focus their efforts in sales and other areas. Ignoring collections is a mistake. Collections should be considered one of the most important company functions, second only to sales.

 

3. Given an incentive to pay early

One simple way to improve cash flow is to offer clients an early payment discount. Additionally, offering this incentive can help create goodwill with your client. Actual terms vary by industry, but it’s common to offer shippers a 2% discount in exchange for a payment within ten days.

Author: Sachin Lohade is a Chartered Accountant and works with Accounting Firms to improve practice and reduce costs. He can be reached out at sachin@corientbs.com or you can visit www.corientbs.co.uk