Financial Discipline for SME
Recently I had chance to attend the business mixer event at MCCIA. It was good experience to meet some new / well settled entrepreneurs and interact. MCCAI has provided very good platform which should be leveraged to exchange idea / thoughts and seek help in your entrepreneurial journey.
In this business event Bank of Maharashtra had given presentation around the Indian SME, their challenges and Banks’ focus on this segment. Statistics mentioned about SME are thought provoking.
|Sr No||Area||SME Contribution|
|1||Industrial Output||Industrial Output 45%|
|4||GDP||17% as of 2011 and 22% by 2013|
Though above numbers looks great, still Indian SME faces lots of challenges when it comes to
- Raise funds for expansion or working capital needs to business
- Scaling of business for growth
- Globalization – Expanding business in multiple geographies
There are nodal agencies and Banks which assist SME for their fund needs still they have to go through lot of hard work & time consuming process to seek fund.
One of the important finding in this journey of raising funds is lack of financial discipline at SME end. This is mainly attributed to
- Traditional and historical way of cash transactions
- Hesitation and lack of focus towards documentation and record keeping
- Unawareness and lack of foresight on the long term impact of financial record keeping
- Unavailability of Mentor and guidance in Financial discipline
- Manual and error prone systems
Now situations and market dynamics have changed. Increased Government focus towards eGovernance and automation of many financial systems (TDS / Sales Tax /Service Tax) has made it mandatory for each business to maintain and operate all their financial mattes using information technology. In such scenario it becomes imperative that SME uses effective IT system(s) which will help them for record keeping and collaborate with their financial advisor. These IT systems not only help in automation and easy retrieval of data but can help to ensure penalty free on time compliance for all financial regulatory requirements.
As a business owner, it’s dream to scale enterprise which can grow globally and recognized. Having sound & clear financial records is very important for healthy foundation of such organization.MindChipps is IT Consulting & Service Firm focused on innovative IT products for Indian SME.MindChipps Consulting has developed a cloud based system - CADashboard which can help SME to take care of their all financial communication and store securely at one place.
CADashboard – Communication, Collaboration and Compliance System which can be accessed from anywhere.
Author can be reached on firstname.lastname@example.org
MindChipps Consulting Pvt Ltd, 17 Swastishree Society, Pune 411052