// EDITOR ’ S QUESTION //

Automating financial processes can significantly impact how quickly a business reaches profitability , even though many new owners may not prioritise it initially .

Managing finances is often time-consuming and overwhelming , frequently pushed to the bottom of the to-do list , especially when balancing day-to-day operations . Take the Self Assessment season as an example . Despite having up to 10 months ’ notice to file their tax return , nearly half ( 46 %) of owners still hold off filing until 2 – 3 months before the January 31 deadline . In fact , a quarter ( 25 %) of the millions of small business owners across the country will file in the last month .

Through automating financial management tasks , owners can free up significant time to focus on what really matters – growing their business and pursuing the passion that drove them to start their venture in the first place .

One critical advantage of automation is that it eliminates manual tracking of expenses and reconciling accounts and generating financial reports , which can consume hours each week . Automation accelerates these processes , allowing founders to focus on revenuegenerating tasks like bookkeeping , invoicing and payroll management .

It ’ s crucial that businesses lean into securing their financial position , with the prospect of possible changes to dividend tax thresholds , corporation tax relief , employment allowances and other key tax policies .

Here are a few tips for business owners to consider , alongside automating their financial management :

You may still be entitled to EU grants , but paperwork can be challenging . Speak to your accountant about applicable grants and seek their expert support in accessing them .

• Use automation tools to track grant deadlines and requirements , streamlining the paperwork process . Many financial management platforms can integrate with grant application systems to ensure all relevant data is organised and easily accessible , saving you from manual tracking .

If you have spare cash , re-invest it into the business or other assets . If you pay corporation tax , take advantage of the tax breaks available under R & D and full expensing . You ’ d be surprised what purchases might be covered .

• Automated expense tracking can help identify purchases that qualify for tax breaks like R & D credits and full expensing . Financial software can categorise expenses in real-time , ensuring you don ’ t miss out on eligible deductions and helping you reinvest your cash wisely .

Get money owed back into the business . Stick to the invoice terms you set out , and if customers aren ’ t adhering to them , you are legally entitled to add interest . If it ’ s a customer that ’ s late paying all the time , set dynamic pricing .

• Automated invoicing systems can send reminders to customers as due dates approach , track late payments and even automatically apply interest fees or penalties when terms are breached . Some systems also allow for dynamic pricing adjustments based on customer payment habits .

AUTOMATING FINANCIAL PROCESSES CAN SIGNIFICANTLY IMPACT HOW QUICKLY A BUSINESS REACHES PROFITABILITY , EVEN THOUGH MANY NEW OWNERS MAY NOT PRIORITISE IT INITIALLY .

Intelligent SME . tech

21