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Is your finance team fit for purpose?

You might have a part-time bookkeeper or several staff reporting into an FD.

You might outsource everything to a firm of accountants or you might do your own books.

Whoever does the job, there is one question you need to ask:

Is your finance team fit for purpose?

If all is well…

Tell-tale signs that things are working well would simply be that:

  • you are getting all the financial information you need to run the business profitably
  • cashflow is well managed
  • you are up to date with tax returns and other regulatory filings and payments

Much less than this and you can be pretty sure that things can be improved, so where to look for improvement?

Processes and systems

Quite often the data required to record a financial transaction accurately and in good time is not available when it should be. For example:

  • sales invoices are raised late
  • bank statements are received by post
  • computer systems do not share data
  • suppliers’ bills sit in an in-box or desk drawer and are not passed on to be accounted for

So the first step is to unblock and speed up the processes for getting the right data to the right person as soon as possible.

People

If the processes and systems are all o.k. then you have to look at the people. Do they know how to do their jobs properly?

From the board of directors down, does everyone know how to do their job to make sure that the numbers are right and are produced in time to be useful?

Also, do the users of the information understand it?

Accounts and finance can be an arcane world in which it has been known for people to pull the wool over the eyes of non-financial colleagues and having bad accounting staff can be very costly.

See our KGB sleeper blog!

What can be done if there are problems?

We see a large number of businesses every year and we have a good idea as to whether the finance team is fit for purpose.

We also know what needs to be done on both the process side and the people side to generate improvements.

So if you are worried that the financial side of your business is performing below par, why not give us a call and we’ll see if we can help you.

 

Michael
@michaeljcaustin