Module 3-Transitioning to the Digital World Final LK

2.1 Finance

Managing your businesses finances is probably the most important process of all. From the safety of your computer you can now generate income statements, balance sheets and cash flow statements without enlisting the services of an accountant. This is made possible by accounting and finance packages such as Sage and Quick Books which integrate seamlessly with your payroll. Banks have automated their processes to make it possible for clients to receive feedback on loan applications within 24 hours. Here it is important to realise that what you put into a system is what you will get out. In other words the quality of your reports is dependent on entering financial and accounting data regularly, consistently and accurately. If you cannot do this rather stay with your accountant/bookkeeper until you have built enough capacity to do so. Human Resources can be challenging for small business owners. In a country where labour relations is highly regulated, compliance to codes of conduct requires attention to detail. Automated HR systems now make it possible to link payroll services to HR services which allow for leave days to be automatically calculated and leave payouts to be accurately calculated. The value add with these services make it possible for a busy small business owner to comply with Skills Development Levies submission, Employment equity and submission of employee tax, Value Added Tax and income tax. Bear in mind though that if these processes are currently working well and you have an accountant and an HR staff member, you need not immediately automate these processes. The old maxim applies here: “If it ain’t broke don’t fix it.” Not many small businesses are in a position to employ an IT person full time. Most will outsource this as they need it. It is a vital function to be performed and money spent on this function is well spent. Good IT services ensure an automated (smart) office with full networking capability and access to the Cloud for back up and related services. With the current energy crisis in South Africa not expected to get better in the near future it is important to invest in power generators, uninterrupted power supply (UPS) units and inverters to protect your infrastructure and prevent damage to it. Technology and associated software together with customised applications will form the backbone of your digital existence. It is important to have a clear and coherent IT plan which incorporates your plan to conduct business in the digital world.

2.2 Human Resources

2.3 Information Technology

2.4 Operations

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