On the global stage, the manufacturing industry is experiencing an ongoing technological evolution that could offer both opportunities and challenges for your manufacturing business.

And technology isn’t the only potential hurdle to leap over as we head into the second half of the decade. There are other pressing recruitment, cost and regulatory issues to consider.

Five key challenges to plan for over the coming year

1. A shortage of talent and the pressure of wage inflation

SMEs are struggling to recruit and retain skilled technical labor. In part, this is due to the changing expectations of candidates and the widening skill gap. To attract the best talent, wage levels have increased, driving up your operational costs and pushing some smaller manufacturers towards the efficiency benefits of automation.

2. Volatile costs and supply chains

Geopolitical events and ever-shifting trade tariffs are continuing to create uncertainty and cost increases for raw materials and component sourcing. This volatility in the supply chain is eating into profits for small businesses that lack the purchasing power of their larger competitors.

3. Barriers to adopting Industry 4.0 technology

Small manufacturers are failing to keep pace with the rapid technological change of the Fourth Industrial Revolution (aka Industry 4.0). Investing in AI, automation and the internet of things (IoT) comes with high initial capital investment costs. Smaller companies also lack the expertise and resources to implement the tech efficiently. This can create a divide between small businesses and larger manufacturing organizations that have invested in Industry 4.0.

4. Increasing ESG compliance demands

Global and local regulations regarding environmental, social, and governance (ESG) factors are increasing. Major customers are pressing for strict compliance and climate disclosures from their supply chains. But it’s the smaller suppliers and manufacturers that may be left with an administrative and ESG compliance headache to solve.

5. Margin Pressure and Pricing Power

With costs rising across the board (materials, labor, energy, technology), manufacturers are squeezed trying to pass costs on to customers without losing business to competitors. Many are seeing their margins compressed, making every efficiency gain crucial.

The talent, supply chain, technology, ESG challenges and margin pressure are not going to disappear any time soon. But some of these challenges can be turned into opportunities with the right strategy.

Come and talk to our team about your concerns and key goals for the next 12 months

We’ll be happy to suggest key operational and strategic changes to get you on track for 2026 and beyond.

The following content was originally published by BOMA. We have updated some of this article for our readers.

Your accountant just does your annual accounts and tax return, right? Wrong!

A good accountant is in touch with you and your business throughout the financial year, checking in, finding out where they can help and offering solid, practical advice.

Here are five areas of your financial management where talking regularly to your accountant is a must – and where we, as a firm, can make a real difference.

1. Cashflow, budgeting, and spend management

Cash is king, so keeping on top of your cashflow is a must.

We can produce cashflow forecasts to predict future shortages, giving you time to act and avoid those cashflow gaps. We can suggest realistic operational budgets, look for overspending and suggest keyways to keep you in a positive cashflow position.

2. Revenue generation and sales strategy

Steady, reliable revenue is what drives the financial performance of your business.

We can review your key sales metrics, like customer acquisition cost (CAC) and lifetime value (LTV), to look for opportunities to generate improved revenue. This could mean optimizing your pricing, new sales strategies or focusing on the most profitable product/service lines.

3. Financial reporting and performance

Having up-to-date, in-depth financial reporting keeps you in control of your finances.

We can produce regular profit and loss (P&L) and balance sheet reports to help you track your performance over time. We can also set up real-time dashboards in your cloud accounting, giving you the key metrics needed to monitor that performance on an everyday basis.

4. Profitability and investing in growth

To evolve, expand and grow, it helps to be profitable as a business.

We can supply a detailed margin analysis, evaluating your offering to pinpoint the key areas of high and low profitability.

We’ll also model the return on investment (ROI) you could get from for capital expenditures, helping you make smart, sustainable investments to drive growth.

5. Being a sounding board for your plans

Running a business can be overwhelming and sometime lonely, you can get concerned if you’re focusing on what really counts especially for achieving your financial goals. Having an experienced and friendly advisor can make all the difference when you’re weighing up your future plans.

Come and talk to our team about ways we can support your financial management, revenue goals and overall financial performance as a business.

The following content was originally published by BOMA. We have updated some of this article for our readers.

Are you spending enough time working on your business strategy?

Past research from The Alternative Board found the average entrepreneur spends 68.1% of their time working ‘in’ their business (tackling day-to-day tasks, putting out fires, etc.) and only 31.9% of the time working ‘on’ their business (e.g., long-term goals, strategic planning).

Revisiting and updating your business strategy is vital for a growing business – and that means making more time to focus on strategic thinking.

Key things to revisit in your current business strategy

Test your financial scenarios, cashflow and budgeting:

Stress-test your cashflow by creating worst-case scenarios and adjusting your operating budgets to reflect the current rising costs for raw materials or labor. Look for any non-essential spending and set clear targets for preserving your cash levels and working capital.

Revisit your customer value proposition

Re-evaluate your customer value proposition (CVP) to confirm it still meets the changing needs of your market and target audience. This might mean simplifying your product offerings, adding a high-value service tier or putting money into deeper customer research and development.

Diversify your product/service offerings

Diversify your products and services to help you engage with new or underserved customer segments. Reducing your dependence on a single revenue stream stops you ‘having all your eggs in one basket’ and helps you reduce the overall risk to the business.

Match talent and resources to your growth strategy

Review your team structure to make sure your key talent is focused on growth and high-return activities.

Putting money into targeted up-skilling and training can improve your overall capabilities; while outsourcing to fill any critical gaps will help you capture new opportunities.

Helping you create a viable business strategy and growth plan

If you’ve not revisited your business strategy in a while, now’s the time to get proactive. Talk to our team and we’ll work with you to review, revise and rework your strategy.

The following content was originally published by BOMA. We have updated some of this article for our readers.

Turning a profit will be high on your list of goals as a business owner.

And if you want to generate the best margins, that means keeping an eye on the money that’s going out of the business, as well as what’s coming in.

So, how can your accountant help with this?

The days where your accountant just did the bookkeeping, compiled your accounts and filed your tax return are well and truly over. Modern accounting firms are far more interested in helping you with your financial performance, your business strategy and offering flexible value-add services that put you in better control of your finances.

If you partner with the right accountant, we can save you money – in both the short, medium and long-term. And that’s good news for the growth of your business.

Keyways your accountant can enhance your financial health

The less expenditure you have as a company, the bigger your profit margin. It sounds incredibly simple, doesn’t it? – The smaller your costs, the larger your profit. But if you’re not fully in control of your financial management, it’s very difficult to know WHERE you’re spending money, and WHY you’re not achieving your profit targets.

This is where working with a finance professional adds a huge amount of value. Your accountant helps put you back in the driving seat of your finances – and that’s never been more needed than in the current economic climate.

So, what specific things can your accountant do and what will the impact be on the future of your business?

1. Tax advice and planning – tax costs can be one of your biggest outgoings as a business, so we’ll focus on getting your tax planning under control, applying for all the relevant tax incentives and ensuring you minimize the taxes on your profits. By paying only what you’re legally required to pay – and making use of any reliefs – we can significantly cut your tax spend in the business.
2. Cashflow management and advice – ‘Cash is King’ may be a cliche, but it’s true. Unless you can balance the cash inflows and outflows from your business, you’ll never have the liquid cash to pay your bills, cover your payroll costs or cover your operational expenses. We’ll show you where money is going out, and coming in, so you achieve the ideal positive cashflow position.
3. Cost control and spend management – to improve your cashflow, you need to reduce your cash outflows. An important way to do this is to focus on cost control and spend management, reducing your expenditure, removing unnecessary costs and negotiating better deals with your suppliers. The more you cut costs back, the better your cashflow will be and the easier it will be to thrive, grow and become more profitable.
4. Forecasting and financial modelling – when we understand the key financial drivers in your business, we can build you a full financial model. This allows us to change the variables, run different scenarios and forecast the various future paths of your business. Being able to project these numbers forward gives you a clearer view of the path ahead – and that’s invaluable in the challenging economic times that we all face at present.
5. Better management reporting and information – your decision-making stands or falls on the information you have available to you. We provide detailed management accounts, breakdowns of key metrics and forecasts of your cashflow, spending, aged debt and revenue – all of which helps you to save money, make sound decisions and keep the revenues flowing into your business.

Talk to us about cutting costs and boosting profits

Rather than running your business on a wing and prayer, by working with an accountant you get a clear picture on your business financials. We’ll help you cut unnecessary costs, optimize the most profitable parts of the business and increase your overall return on investment.

Let’s talk about how we can work together to support your ongoing business profitability.

The following content was originally published by BOMA. We have updated some of this article for our readers.

Understanding the financial management of your small business is a vital skill as a business owner. And it starts with an awareness of two fundamental concepts: income and expenditure.

Grasping the difference between what comes in, and what goes out, is crucial for your financial health, making informed business decisions and the overall survival of the company.

Let’s break down the basics.

1. What is income (revenue) and how do you generate it?

Income, often called revenue, is the money your business earns from its core operations, before any costs are deducted.

This income comes primarily from selling your goods or services to customers. Whether you’re selling handmade crafts, offering consulting services or running a local café, every sale contributes to your income. You may have secondary sources of income as well, such as rental income from property, or interest you’ve earned on your business savings.

The goal is to maximize your income streams through effective sales, marketing and excellent customer service. This ensures you have a steady flow of cash coming into the business.

2. What is expenditure (costs) and how do you manage these costs?

Expenditure, or costs, refers to the money you spend to operate, trade and generate your income as a business.

This expenditure can be direct costs, like the raw materials for a product, or indirect overheads, such as rent, utilities, salaries, marketing, and office supplies.

Effectively managing these expenses is vital for your cashflow and profitability. Keeping your spending under control means reviewing your outgoings, negotiating prices with your suppliers and distinguishing between essential spending and discretionary expenses.

Careful cost control ensures that your hard-earned income isn’t eaten up by unnecessary outgoings, helping you take care of the financial health of the business.

3. What is a profit and loss report and why is it important?

Your profit and loss (P&L) report, sometimes known as an ‘income statement’, is a crucial financial document that summarizes your business’s income and expenditure over a specific period (e.g. a month, quarter, or year).

Your P&L report directly accounts for income by listing all revenue generated at the top. Below this, it details all the associated expenditures, categorized for clarity (for example, cost of goods sold, operating expenses, administrative costs etc.).

By subtracting total expenditures from total income, the P&L report ultimately reveals your business’s net profit or loss for that period. This gives you a clear overview of your financial performance during a specific period.

If you’re new to financial management, getting your head around the ins and outs of accounting can be a complex task. But it doesn’t have to be rocket science.

Come and talk to our team. We’ll be happy to explain the importance of income and expenditure and how these metrics are represented in your P&L report.

The following content was originally published by BOMA. We have updated some of this article for our readers.