Do British business owners acknowledge the true value of understanding how to best manage their accounts? A recent piece of research suggests SMEs are losing around 2.9bn each year due to unqualified finance staff, which would suggest the answer to that question is ‘no’.
What are SMEs doing at the moment?
According to the study, published by the Association of Accounting Technicians (AAT), each SME in the UK is on course to lose, on average, 1,277 this year, a sum which incorporates 508 worth of miscalculations, and another 400 because of invoice issues.
The AAT has stated that around six in 10 small business owners within the UK are exclusively responsible for controlling the finances of their operation, with a mere one in four admitting that they have one or more devoted employees whose role it is to administer financial and accounting practices.
What’s the cause?
One of the primary reasons behind companies failing to handle accounts in the most financially beneficial way is because of lack of training. The accounting landscape is constantly changing, and that is causing some people – particularly those that have grown up using pen and paper – substantial monetary issues.
Traditionally, accounting has been done either by pen and paper or on very basic computer programs. In recent years, however, the sophisticated software has started to dominate the accounting landscape. Programs such as Xero, Quickbooks and Sage have made accounting relatively simple, and comparatively swift.
However, while this is the case, it is also true that the growth of these systems has bred complacency. Because accounts can now be filed with relative ease and speed, the incentive is often to get everything done quickly so it can be signed off as a completed task. By taking a little more time to comprehensively assess the finances of the company, and to file accounts in a way that is ultimately constructive, huge sums of money could be saved. Those who are financially literate can encourage business owners to take more care.
careers with an accounting degree boosting
Whether or not you’re considering a career in accounting, it’s undoubtedly true that having a robust knowledge of how to carry out processes surrounding payments, invoices and tax issues can be incredibly useful throughout your career.
Numerous small businesses are making serious accounting errors, and many don’t even realise they are handling their processes inefficiently. If you can show on your CV that you are able to not only streamline company procedures but also save them money in the long term, you will likely be regarded as a key candidate.
A knowledge of accounting can significantly bolster your career credentials, so if you want to embark on studying a program in the field of Accounting and Finance, get in touch with Mont Rose College in London today.