Small businesses have the ability to make a real dent in South Africa's unemployment rate, but to do so they need to be up to speed with their finances so they make smart choices when it comes to expanding.

Colin Timmis, the head of accounting in South Africa for Xero, a company that produces cloud-based accounting software, says financial information has traditionally been in the hands of accountants or bookkeepers, rather than with the owners of small businesses.A recent survey Xero commissioned on the small- and medium-enterprise sector found that 40% of local small businesses relied on error-prone spreadsheets and paper records to manage their finances.story_article_left1"Considering that the economic output of small- and medium-sized enterprises in South Africa is estimated at 52% of GDP, that's a potential R1-trillion of GDP at risk," says Timmis.He has the following advice for SMEs:• It is impossible to make important business decisions without accurate financial information, so ensure you have access to it;• Get a website that is designed for sales;• Have clear objectives on who you want to be and what kind of customers you want - don't try to be all things to all people; and,• Develop a sales and marketing strategy, instead of just waiting for organic growth. Owners "need to have the confidence to effectively sell their services", says Timmis...