Whether you’re from Cambridge or London, ambitious business owners strive to streamline business operational activities with the utmost efficiency. Unfortunately, inefficiencies can, in fact, drown the life of your business.
Now, it could just be a few transactional errors or non-productive workplace
atmosphere to tackle daily tasks; your business can face dangerous loopholes
and jeopardize potential growth. Naturally, you don’t want your business to
bear the burden of inefficiency that might hold you back.
There’s no such thing as small or extensive inefficiency; the impact
from both can inevitably hurt your business. Here are some of the
inefficiencies that you should keep an eye on:
Costs
Are Increasing
It is true – rising business costs are turning into a major issue
for businesses throughout the UK. Small companies, for instance, often have
higher business costs than they should. When expenses pile up, your business
has to find effective saving methods.
Technically, high expenses are often difficult to prevent. However,
all you may need is to address the inefficient processes of your business.
Furthermore, overdependence on outdated forms can affect the completion of
tasks, transportation, organizational structure, and even basic paperwork.
A
Multitude of Mistakes
So long as you want to get rid of inefficiency, make sure to do it
on the first attempt. That said, several businesses don’t pay heed to small
operational redundancies that mutate into something bigger. Thus, don’t
overlook small mistakes that might lead to more damage.
And if you still run into countless small mistakes, it might be more
than just human error. In fact, it may be because inefficient processes are to
blame.
Loss
of Information
Sure, the skill to find data instantaneously is vital for your
business. However, you don’t necessarily have to spend your valuable minutes
looking for the correct file, spreadsheets, or any document. If you, however,
find essential information missing, it could be because of the loss of money
and time that can tarnish your reputation.
Slow
Invoicing Process
Every business wants to create, approve, and deliver invoices
quickly for the payment. But that perfection, however, can be too sketchy for
business owners. Realistically, it can take a day, week, or even a month.
Nonetheless, in a competitive business dynamic world, slow invoicing
can impact your cash flow through delayed payments. Practically, you shouldn’t
be wasting time and money on outdated carbon forms.
Slow
Business Growth Rate
Your business cannot grow without technological, cultural, or
compliance with standard practices of your industry. And if you’re company is
experiencing slow growth or not growing at all, it could be because of an inefficiency.
For the sake of the continuous growth of your business, you should
keep your costs as low as possible. And that’s because failure to maintain
higher costs can have an impact on your entire business. Often, simple tasks
take a long time because of this reason.
The
Last Words
There’s a good chance you have a strong feeling that something may be wrong. And before you know it, frustration will lead you to search for wrong answers. Inefficiency might be the thing that’s slowing your company down. And now it’s up to you to ensure that your financial structure and especially taxes are in order.
We can help with all of your business and personal tax and financial planning needs. For a strategic review of your finances, please contact us.
Disclaimer: We don’t take any responsibility for actions taken based on above information. Please speak to our financial advisor if you need more information. This guide was written specifically for Smart Accounting clients. Some of the information contained in this guide might not be applicable if you do not have a business managed by Smart Accounting. By necessity, this briefing can only provide a short overview and it is essential to seek professional advice before applying the contents of this article. No responsibility can be taken for any loss arising from action taken or refrained from on the basis of this publication. Details are correct at time of writing.
You may also like
When to register for VAT You must register if: your total VAT taxable turnover for the last 12 months was over £85,000 (the VAT threshold) you expect your turnover to go over £85,000 in the next 30 days You must also register (regardless of VAT taxable turnover) if all of the following are true: you’re based outside the UK your business
Read More
Under the Construction Industry Scheme (CIS), contractors deduct money from a subcontractor’s payments and pass it to HM Revenue and Customs (HMRC). The deductions count as advance payments towards the subcontractor’s tax and National Insurance. Contractors must register for the scheme. Subcontractors do not have to register, but deductions are taken from their payments at a higher rate
Read More