South African business owners have been in a state of stress since President Cyril Ramaphosa announced on 23 March that there would be a nationwide lockdown to limit the spread of the coronavirus. It’s especially understandable that small businesses will be experiencing anxiety in these uncertain times. But what can we do to counteract the effects of stress? Here are our top financial stress relief tips for small business owners.

Draw up a budget

According to web-based personal financial management service Mint.com, drawing up a budget is great for easing your financial stress. It will give you a bird’s-eye view that will incentivise saving money, help you to meet long-term financial goals, get out of debt and build self-discipline. Read more about it here.

Cost-savings for small businesses

If you need to save money for your business, look at your expenses and try to trim luxuries you can do without for the moment. This might include things like unnecessary travel or expensive snacks. You can also examine what you’re currently paying and see if you can cut down on existing expenses. Research alternative service providers to see what they will charge you.

As part of the government Employment Tax Incentive programme, companies can claim up to R1 500 a month for every employee who earns less than R6 500 (for those younger than 30), and R500 for those 30 years and older. There are also the Unemployment Insurance Fund payments from the special Temporary Employee/Employer Relief Scheme that cater for workers in distressed companies. Take a look at this Small Business Institute web page for more information about the government-led relief fund for small businesses and the SA Revenue Service four-month payment deferral for tax-compliant small businesses.

Automate with cloud accounting

Cloud computing is part of the Fourth Industrial Revolution that’s changing the game for SMEs, especially regarding costs and efficiencies. Not only does the cloud allow for better collaboration between all role players, who can access key information which is constantly updated, but it also makes work easier.

For example, it automates accounting functions such as adding every bank transaction your SME makes with the added benefit that the process is faster and more accurate. Using the cloud costs less than using traditional servers and hardware with the benefit of having fixed monthly fees, no initial costs for infrastructure and no long-term contractual obligations.

Rae & Associates can help you make the move to cloud accounting so you can experience the advantages of technology in your business accounting today. We also have training courses to prepare and support you.

Talk to us to find out more about how small business accounting software can help you take your business to the next level.