The impacts of COVID-19 are creating both opportunities and challenges for Australian and New Zealand organizations. To either capitalize on the new opportunities for growth and development or supplement the region of the business that have suffered because of the pandemic, many businesses are walking the extra mile and offering additional products and services that may or may not connect with their core activities. While these extra contributions might be the key to resilience, organizations should be vigilant with regard to the level of risks they can host.
Today, many organizations are required to enhance with new products and services in order to cope up with the continuous impact of COVID-19. For instance, the dine-in facilities in restaurants changes to takeaway and home delivery during the lockdowns, and many restaurants and cafes are still offering the home delivery service after the pandemic restrictions have eased.
Risks for Business Today
Probably one of the greatest risks with regards to side business is monitoring and keeping track of invoices and expenses related to the niche business.
Invoicing and expenses management for side organizations can frequently be caught up with the core business financials, which can affect planning, budgeting, and the overall business picture. This can skew the results and lead to poor decision making based on inaccurate data.
Ways to Mitigate Risks
To mitigate the risks and keep track of income and expenses, diversified offerings should be managed and maintained separately with their own financial statement. Perhaps one of the greatest mistakes both the individual and organization make is that they try to manage the expenses and invoicing relating to these expanded or diversified offerings through manual processes, such as spreadsheets, that are both time-consuming and error-prone.
Affordable, cloud-based expenses and invoicing management solutions have made it easier for individuals and businesses to manage several numbers of expenses and revenue streams through automating processes and supporting various categories of business. For instance, solutions for invoice and expense management can automate the spend management and invoicing processes. These can also be financial reports based on real-time data analytics so that the business can focus on other factors of generating more revenue and its related activities than on managing the financial report.
Besides, the automated and cloud-based tools simplify the revenue and expense management process across invoicing, expense tracking and reporting regardless of how complex the business structure is or the number of sides the organizations are involved.
Furthermore, in this digital age, more people and organizations will have the ability to extend their products or services to enhance income streams and build financial resilience. These side businesses can likewise develop and may even replace the core business.
Organizations and individuals that continue involving manual processes for their side businesses are particularly vulnerable to issues like worker fraud and costly mistakes. They likewise face the risk of being left behind as the digital economy dominates. Then again, having the right advanced instruments set up not just supports the management and development of the side business, however, can help entrepreneurs easily recognize new revenue streams that may some way or another be missed with manual processes.
Consequently, it seems OK to utilize advanced devices that furnish powerful monetary cycles with real-time analytics and can scale with the business and its activities in general.