The news about the recent economic problems and the looming double dip recession has been tough. The on-going Eurozone economic concerns have triggered a complete collapse in consumer confidence not seen since the original 2008 recession. The consumer confidence collapse coupled with the growing anxiety around global debt has led to a restriction of credit made available to small businesses as worried banks reduce their perceived risk to bad loan repayments. With consumers keeping hold of their money and credit becoming harder to access it is no wonder that small businesses are struggling. This article talks about the important role and benefits accounting software can play in allowing small businesses to navigate through these hard economic times.

How can accounting software help small business?

Business must be lean and financially sustainable to survive through the current business climate. Small businesses with large overheads and complex financing structures should work on re-organising the business to regain control of their long term economic futures. Now is not the time for reckless investment in the pursuit of growth that only adds increased debt and inflexibly that could ultimately lead to the businesses downfall. Now is the time for prudence and tight financial management that allows a business to be financially independent. Accounting software can be central to supporting small businesses become financially independent and below investigates how.

1) Complete focus on cash flow

A business owner should be 100% focussed on the financial health of their business. This means having a thorough understanding of the businesses cash flow position. There is nothing more important in a small business than its cash flow position and as result should be very tightly managed. One of the difficulties for small businesses keeping on top of cash flow is the organisation of receipts and invoices. An accounting software package easily compiles all of the relevant financial information and presents easy to understand dashboards and reports of company performance. Once provided with the required knowledge of the company’s performance appropriate action can be taken to improve the company’s performance.

2) Focus on customer satisfaction

In times of economic hardship competition is notably increased in every sense. As customers are more considered with their buying decisions small businesses need to ensure that every aspect of their proposition is appealing to the customer. Margins are widely squeezed across all industries in the hope of enticing hard-up customers and therefore the only real differentiator to attract business is customer service. An accounting software package does not only improve business productively it also helps structure all customers and suppliers into an easy to manage database. This structured knowledge allows staff to provide a more tailored service to clients.

3) Look for ways to cut costs

In this economic climate any investment that doesn’t directly add value to the top line should be cut. Accounts Payable features with an accounting software package detail every penny that is spent in the business. This allows a thorough review of expenditure to take place to ensure that savings can be made where appropriate. For example costs could be cut down on paper, postage, transitioning to direct debit payroll. These cost cuts would allow the business to reduce its operating cost without cutting expenditure that generates income into the business.

4) Consolidate Suppliers

Businesses can also use accounts payable features within their accounting software package to streamline its supply chain. Many businesses needlessly have similar supplies from a range of suppliers. Buying in bulk is always a more economical way of doing business. Condensing suppliers with larger orders is more commercially viable in reducing supply costs. Generating reports by independent supplier will provide valuable information regarding the profitability of each supplier contract.

5) Negotiate better rates with long standing suppliers

In addition to the consolidation of the supply chain there may also be an opportunity to renegotiate rates with long standing suppliers. The longer the relationship between a business and a supplier the more appropriate it would be that the business qualifies for a rate that reflects the loyalty of the relationship. Reducing the costs of the supply chain can make a significant and welcome difference to a small business P&L during tough recession times.

6) Continuously look for ways to reduce non value adding admin work

In any small business the time of employees is one the company’s biggest assets and therefore spending time on non-value adding activity should be minimised wherever possible. An accounting software package ensures that people are not tied up managing basic bookkeeping tasks and completing quarterly and end year financial reports. Managing a business’s financial affairs can be very admin heavy if not managed in the correct manner. Having efficient software to automate these admin tasks allows staff to focus their attention on growing the business and generating income.

7) Streamline payroll and human resource management

As already discussed people are a huge asset in any small business. An accounting software system can help provide detailed information around staff costs in addition to hours worked and absence information. Having detailed information about staff costs allows a business to more accurately plan for the future and correctly budget for human resources. Also from a financial perspective large fines are imposed on businesses that make mistakes on Tax and National Insurance contributions. Having automated software negates the risk of mistakes occurring at a time when fines cannot be afforded to be taken.

Streamline billing and invoicing

Not being on top of your receivables can literally be the difference between success and failure in today’s challenging business environment. An accounting software package allows a business to fully manage and organise its invoices and payments deadlines around the businesses bills and costs. This way invoice payments get received in advance of bill payments ensuring cash flow is never a problem. Having effective and well organised billing and invoicing ensures that a business income remains consistent.

9) Assertive debt collection techniques

Even if a business has streamlined invoice and billing processes there will still be some customers that do not pay on time. All of the structure and process in ensuring invoices are aligned with business costs will have been wasted unless good debt collection processes are adopted as well. Businesses should know when to make phone calls, send written communications and when work with debt collection agencies in order to optimise income collection.

10) Know you financing options

The Accounting software package allows a business owner to have detailed forecasts of predicted income and expenditure over the short, medium and long term. Having a longer term view of capital expenditure allows more intelligent decisions to be made around company financing. As a rule of thumb last minute loans tend to be expensive as owners run out of time and simply need to pay bills. All forms of business financing from credit cards to structured loan agreements should be reviewed in line with long term accounting forecasts to ensure that the best suited finance is in place at the best possible price.

It has never been more relevant for a small businesses to invest in an accounting software package. The benefits run much deeper than simply allowing businesses to keep accurate and timely financial records. Accounting software enables a business to self-analyse every business process in the eyes of profitability and business return. Businesses that adopt the mind set of accounting software by definition embrace the notion that all company expenditure should be controlled and used to drive additional revenue for the business. These lean businesses will be financially sustainable and able to withstand these hard economic times in order to be well positioned in the market to capitalise when consumer confidence returns.

Auctions are those events where properties or goods are sold to the highest bidder. Auctions are mostly public events, where bidders make a series of bids and purchase a particular item for a high price. During auctions, bidders decide the price of an item rather than the seller. It depends on bidders to decide the amount they would want to pay for a specific item. During an auction, a bid is a proof of a legal binding. Bidders agree to pay the amount that they have bid. In a high profile auction, bidders may have to pay a deposit in escrow accounts or give a proof that they can pay for those items.

Types of Auctions:

Different types of auctions take place around the world. Below mentioned are some types of auctions:

1. English auction:
This is a basic type of auction. In this type, people can see the item and then start bidding. Bidders slowly raise the value of their bid until everyone gives up. The highest bidder is the winner. An auctioneer manages an auction, keeps records of the on going bid and decides the winner. Sometimes, the seller will quote a minimum amount for an item to the auctioneer, below which the auctioneer cannot sell that item.

2. Dutch auction:
In this type, the auctioneer sets a particular price and then gradually lowers the price. People in public will start bidding and later decide which prices are suitable for the item. A seller may use this type of auction to sell large quantities of same products to the public. For instance, a seller may want to sell a large amount of hay and will thus, decide to sell this hay to people for the same amount, once a reasonable price is decided.

3. Silent auction:
In this type, the bidders in public will present their bids in a sealed format. These sealed bids open at the same time and bidder with the highest bid wins. There could be a modification in this type of auction. The bidders are allotted a specific period to bid. They can roam in a room displaying the items, and write their bids on an associated sheet of paper. The bidders are allowed to see bids of other bidders and can choose a higher price for an item. At the end of the allotted time, bidder with the highest bid is the winner.

Examples of Auctions:

Auctions can be of two types either public or private. Sellers may trade any kind of items in both types of auctions. Some areas where auctions take place are:

1. Antique auction: An antique auction consists of a trade opportunity as well as provides entertainment.

2. Collectable auction: In a collectable auction, the seller may put up collectables like coins, vintage cars, luxury, stamps, real estate, and luxury for sale.

3. Wine auction: In wine auction, bidders can bid for rare wine, which may not be available in retail wine shops.

4. Horse auction: Bidders can bid for young horses of the best breed.

5. Livestock auction: In livestock auction, bidders can buy pigs, sheep, cattle, and other livestock.

The other examples of auctions may not be public. These auctions are for bidders from corporate levels. Some examples of private auctions are:

1. Timber auction
2. Spectrum auction
3. Electricity auction
4. Debit auction
5. Environmental auction
6. Auto auction
7. Electronic market auction
8. Sales of business auction

Bidders in an auction need to examine the items displayed and decide an appropriate price for an item. Thus, auctions help buyers in getting the best deals and in gaining better profits for sellers.

Learning how to generate home based business leads is the most important thing you must know in order to be a successful internet or network marketer. Without fresh leads coming in on a daily basis your business will not go anywhere and you will soon become a member of the “97% club”.Traditionally, when you join a home based business or MLM you are asked to make a list of all of your friends and family who you think might be interested in your product(s) or opportunity. This is the first mistake of most network marketers.Writing down all of your personal contacts is not only bad business its bad on a relationship level. Most of the time you will harm your relationship with a friend or family member by trying to sell them something they don’t want or pitching them on your opportunity.If you are reading this article you may already know what I’m talking about. Most people have learned, if they have done other home based businesses, that making a list is like pulling teeth.By now, you know that making a list is out of the question. Successful network marketers and home based business owners have learned not to do this. So what do they do and what do they recommend?I’m glad you asked! I’m about to share a little known secret with you that will help you explode your business and put you at the top of the leader boards within your own company.Generating home based business leads can be done for free online. Let me pause and say that generating leads is an “art”. The guys who are generating 100+ leads a day started by generating 1 lead a day. And then 2 leads. And then 3 and so on.The more you learn and develop as a lead generation expert the more leads you will bring in on a daily basis.So how do you generate 20+ home based business leads every day online for free? You start by educating yourself. Learning and duplicating what the experts do is vital for you as someone who is just getting started.Lead generation is not easy and most people do it incorrectly. Learning the right way to do lead generation will put you way ahead of the learning curve and save you countless hours and headaches along the way.I am about to give you a very simple formula that I use on a daily basis to generate 20+ leads per day online for free.(CT + SN) x EM = LGPAre you scratching your head yet to figure this formula out? Let me explain.CT stands for “Content”. Generating leads is done by the law of attraction. The way you attract others is done by placing content online that will be available to view when someone is looking for it. Content can be in the form of a blog, article, press release or video. I recommend all of the above.Generating leads starts by building content and blasting it all across the internet. This will create a “web” to capture your leads that you attract. Simply put, creating content is just a way to give people what they are looking for.For example: if you wrote a blog titled, “ABC Network Marketing Company Review” people who are doing research on this company would read your blog. Most often, people who visit your blog will see you as a leader and want to know more about you. This brings us to the next part of the equation.If you want 20+ home based business leads a day chasing you down then you must make yourself available on the “Social Networks”. When someone visits your blog or watches a video you made you must give them the option to meet you and learn more about you. This can be done by creating accounts with a few of the social networking sites out there.Most of you already do this but maybe you go about it the wrong way. First of all, social networking takes up a lot of time. I know people who spend half of their day posting tweets on Twitter and looking what friends did last week on Facebook.Getting distracted costs network marketers millions of dollars a year so be careful!People who want to know more about you will come find you so first create accounts with Facebook, Twitter and MySpace. Actively communicating on these three networks will make yourself available to most of your leads. If someone doesn’t have a Facebook account maybe they have a MySpace or Twitter account. You get the idea. The point is to make yourself available to anyone who wants to find you.Okay, so far we have created content and made ourselves available on the social networking sites. So how do we create leads from this? A lead is not a lead until they give you their information. This is done by an opt-in or lead capture page. Setting up these simple websites to obtain someone’s contact information is how a lead is generated. I call this “Email Marketing”.You must be able to communicate effectively with a lead. The best way to do this is through email marketing. Anyone who is success in this industry will tell you that building a list is the foundation of their business. Without a list of contacts to market to you are not going anywhere.Being able to send out an email to your list is priceless. It’s how all of the top income earners got to where they are so it only makes sense for someone who is just getting started to do the same thing.(Content + Social Networking) x Email Marketing = “Leads, Growth and Profits!”This simple formula is how you can generate 20+ home based business leads a day online for free.To find out more about this formula and exactly how to implement it continue to read the resource box below.