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Government tenders are a lucrative source of income for businesses in the construction, logistics, IT, and service sectors, but dealing with a large client like the government is vastly different than handling small business or individual customers.

Gearing up to apply for tenders, fulfilling the eligibility requirements, and delivering on the contract effectively all require a complete change in thinking and business organisation. An outsourced accounting solution can provide your business with the expertise that’s required to keep operations running smoothly while scaling up for this lucrative opportunity.

Is your business ready to bid for a tender?

Expanding your client base to include government work is an excellent way to increase the size of your enterprise and gain credibility as a provider on large-scale projects. The question is, does your business have the organization and management it needs to do the job effectively?

Here are some of the difficulties that medium-size businesses experience when dealing with government tenders for the first time.

  • Cash flow management. Government tenders are often paid on terms longer than 30 days. This means that cash flow management and bridging finance may be needed to fulfil your tender obligations while you wait for payments.
  • Large scale efficiency. Keeping track of expenses, payments, deadlines, and project management goals when dealing with large tenders can be a major challenge. Comprehensive management accounting and payroll management are needed in order to navigate this process without mishap.
  • Tax compliance. Benefiting from government tenders may push your company tax to levels you’ve not seen before, especially if your business turnover was under R1 million previously and you now have to deal with VAT payments.

The challenges involved in dealing with government tenders are substantial, but the good news is that all of the challenges above can be overcome with our outsourced accounting service and the other services in our line-up.

Gear up for growth with Bletchleys

At Bletchleys we pride ourselves on our expertise in assisting small businesses to become medium size businesses and medium size businesses to go big. As you explore the lucrative opportunities that tenders have to offer, our team will support you in all aspects of your accounting and tax requirements. Contact us today to learn more.

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