Small and medium-sized enterprises (SMEs) operating in the UK need to consider sustainable growth strategies in order to get the most out of their businesses in the medium to long-term, a new study suggests.
In recent days, Real Business magazine has mapped-out a five-point checklist for SMEs that are hoping to grow and expand in the coming year.
The five points it suggests SME owners and decision-makers ought to consider are:
- Marking ‘key tax dates’ on their calendar to plan ahead.
- Training staff by encouraging them to learn new business and accountancy skills.
- Setting up a ‘reserve bank’.
- Keeping back a percentage of regular income to be used for tax and VAT purposes later in the financial year.
- Spending ‘strategically’ on investments that will deliver growth (such as advertising).
The five points follow an interesting report published by the Association of Accounting Technicians (AAT) in recent days, which estimated that the average SME is losing approximately £15,000 a year due to the fact small business owners are relying on ‘unqualified’ members of staff to handle their accounts and financial reporting obligations.
The report suggests that businesses are woefully underestimating the importance of working alongside accounting professionals, having found that most small businesses will only speak to their accountant once every two years.
Adam Harper, Director of Strategy and Professional Standards said that this was having an adverse impact on sustainable growth.
He said that businesses ought to consider “engaging an external accountant” or, at the very least, upskilling their existing staff.
