Here’s how we solve it
Over the past few weeks, I’ve been talking about the power of management accounts to transform your business.
Imagine getting a monthly report that gave you deep insights into your company’s finances, empowering you to make better decisions for the future…
Today I’d like to share with you a response I received from a business owner, who explained that they do not have enough financial information about their business to make sensible, confident decisions going forward. They recognised just how useful management accounts would be.
However, they really like their bookkeeper who has been with the business for over a decade.
Could we provide monthly management accounts as a stand-alone service, they asked…
…Without the other aspects of financial management we usually provide – such as installing robust financial systems and processes in the business, and managing the day-to-day financial transactions?
Unfortunately, the answer is almost always “no”.
Our financial management services come as a package – and there’s a good reason for this.
Think back to the last time you tackled a challenging jigsaw puzzle.
Completing it required two things:
- All the pieces: Nothing is more frustrating than discovering that some of the pieces are missing just before you’re done. It makes the job impossible.
- Sorting the pieces: You begin by identifying the frame pieces and then sorting the remaining pieces by colour, so you can see at a glance where they all fit. If the pieces are all scattered haphazardly on your table, it complicates the job.
Your management accounts resemble a puzzle…
They are not simply financial reports generated with a click of a button. Tailored exclusively to your business, first we capture all the puzzle pieces — every financial aspect of your operation.
Then we take these puzzle pieces and meticulously arrange them to create a clear picture, presenting you with precise information that empowers you to manage your business more effectively.
To accomplish this, we require all the puzzle pieces!
For instance, each month, we need your sales invoices, purchase orders, accurate expense information, and sales data for your products or services to be processed promptly. With any missing data points, we cannot produce your monthly accounts.
But it’s not just about having the pieces scattered somewhere in your system. We need the information to be organised and processed in a specific manner that allows us to deliver the insights you need.
Suppose you have multiple product lines; in that case, we may require figures broken down for each one to pinpoint where the profit lies within your business.
The puzzle pieces need to be arranged in a sensible and helpful way.
Your bookkeeping must adhere to world-class standards month after month, requiring robust systems and processes to ensure speedy and accurate operations.
Many businesses struggle in this area. Even if your bookkeeper or accountant is competent, it’s highly unlikely that they can match the speed and accuracy expected at a corporate level. But that is precisely the standard we adhere to, as it allows us to provide you with meaningful monthly financial insights.
In short, monthly management accounts are not created in a vacuum. They are part of a comprehensive ecosystem of outstanding financial management.
That’s why we can’t offer them as a stand-alone service.
When you choose to work with us, we ensure that your bookkeeping and accounting processes run seamlessly, enabling us to deliver the value-added aspect of our service — insights and advice that help you maximise profitability, achieve faster growth, and reach milestones like £5 million, £10 million, and beyond.
To learn more about our Outsourced Financial Management services, including the invaluable monthly management accounts, please get in touch with us today.
Simply hit ‘reply’ to this blog or call us on 01279 647 447 to find out more.
Warmly,
Garry
