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Business finances comprise a whole host of tasks – bookkeeping, accounts, payroll, planning, cashflow, borrowing and investment needs… And because it changes as the business grows and matures, the finance function – the people and systems that deal with the finances – often ends up as a bit of a mish-mash: the set-up that was needed and used effectively in the past struggles to cope after business growth and maturity.

Some aspects, such as bookkeeping, are seen as simple admin tasks to be handled in-house, perhaps via an accountancy software package, while compliance, payroll, annual accounts and tax, for example, may be considered too complex for the in-house team, so outside experts are brought on board.

Even bookkeeping should be recognised as a key element of your business finances. It isn’t just a data-entry task; it’s the foundation of everything. And without a solid foundation, everything else is liable to fail. Knowing how to input accurate information into the accountancy software isn’t enough: it’s essential to know how to get meaningful information back out of the system.

So it’s a good idea to look at your business’s finance function: who is on your team? who is doing what? And where and how are they connected and communicating?

Having the right finance function means working with a team of people who:

1. Have the same core values as you and understand your goals and those of your business. By working together on your plan, you will achieve those goals together.
2. Can compare your business performance against others in your sector and tell you whether your strategy, your pricing and your margins are as they should be.
3. Will implement automatic measurement systems that enable you to have a finger on the pulse of the critical measures in the business.
4. Will challenge you and act as a sounding board. They’ll know exactly what you’re going through, they’ll be able to provide you with the information you need quickly, they’ll understand your pains, and they’ll help you overcome the challenges.
5. Will provide management reporting in plain English or as graphics, not accounting jargon. Hence, you receive not just numbers you understand but supporting explanations as to what those numbers mean to you and your business.

Perhaps the main point is to stop thinking of your business finances as a series of separate, disconnected tasks. Make sure you have a team you can count on who understand where they belong in the bigger picture and who work together to make your business successful. This is not an optional cost. It is a sound investment in your future success: the Return On Investment will be seen by increased efficiencies and a more stable and predictable net profit.

Wherever your finance function fails, I can help you fill the gaps and move forward to a clearer future. Why not give Julia a ring on 07855275099?