Leading tech is one reason why New Zealand has one of the best agricultural sectors in the world. But with the Ministry for Primary Industries' goal to double primary sector exports from $32 billion in 2012 to $64 billion by 2025, investing in efficiency is more important than ever.
When it comes to improving business productivity, the people I've met value investing in technology but don't think about business efficiency in the same way. No matter the size of the company, business owners often talk about wanting to be more efficient and productive, but it's a shame that only a few are looking at how to make improvements in finance management.
Business owners in the agri sector manage everything from people to machinery, supplier and business relationships, while working in unpredictable rural conditions. On top of this, they manage the accounts in their business, sometimes from the kitchen table. In no other sector would this be considered efficient. Clearly, investment in the less glamourous back office is needed to help achieve New Zealand's export goals, one agri business at a time.
Some of the factors that make accounting complex include long payment times, personal/business relationships and slow invoicing. However, it is possible for business owners to spend less time on the books and more time doing the things they love. For most of the business owners I meet, they love creating new opportunities for growth and spending more time at home with their family or on leisure activities.
If cash is king, processes for ensuring you're paid on time and correctly are critical to regular cashflow and maintaining a healthy business. Very few people love invoicing, accounting and finance, so it's best to keep it as productive and profitable as possible.
