A finance department must work as a system
Last week, we received an enquiry from a potential client.
They wanted to know if we could act as their Finance Director while they retained their in-house finance team, which consisted of a bookkeeper and an accountant.
In other words, instead of acting as their full finance department — handling all finance-related tasks — could we just take on part of the job?
It’s a question we hear regularly. So I’d like to answer it here — and in doing so, shed some light on what makes a finance department truly effective and what you should be looking for as your business grows.
The answer goes back nearly 30 years to when we founded Insight. Our original idea was to act as interim CFOs for businesses that had never had anyone in that role before.
At first, we worked with several companies in distress, and for a while, it seemed like a great fit. These businesses urgently needed someone who understood both finance and business strategy — someone who could help the CEO make financially sound decisions for the future.
But we soon ran into trouble.
To provide the right guidance, we needed accurate, real-time financial data. Without it, we couldn’t fully understand a company’s current position or make useful forecasts for its future.
Yet, time and again, we found that in-house finance teams — despite being well-meaning and dedicated — weren’t producing the data we needed. They were often working with outdated systems, and their numbers were frequently late, inaccurate, or overly simplistic.
In short, the finance department wasn’t functioning effectively — and in many cases, that was part of the reason the company was struggling in the first place.
This, in turn, affected us. We couldn’t work efficiently as CFOs when we had to spend time chasing down basic financial information. In some cases, we even found ourselves pulled into bookkeeping and accounting tasks — making us the world’s most expensive bookkeepers!
Eventually, I had a realisation…
The only way we could truly add value to our clients was to take on the entire finance function — including bookkeeping, accounting, and the Finance Director role.
Only then could we ensure that every part of the finance operation worked seamlessly, to the highest standards, and in a way that empowered the Finance Director to make the best strategic decisions.
You see, a finance department isn’t just a collection of separate roles — it’s a system. Every function must be connected, with information flowing smoothly from bookkeeping to accounting to financial strategy. If one part isn’t working properly, the entire system is compromised.
But when all elements operate together, with the right processes, expertise, and technology in place, the finance department becomes a powerful driver of business success. And it can really help the founder or CEO do their job with more confidence and ease.
Nowadays, we mostly don’t work with distressed businesses. Our primary focus is working with ambitious businesses that want to scale faster and maximise profitability. They recognise that their finance function must operate at the highest standard if they’re to make the best strategic decisions.
And we also rarely take on part of the job — our preference is to take responsibility for the entire finance function. Because that’s the only way to ensure your business gets the financial clarity and strategic insight it needs to thrive.
I’ll tell you more about what that system looks like in my next email, so please do watch out for that.
But in the meanwhile, would you like to discuss what this could look like for your business?
Simply email garry@insightassociates.co.uk or call us on 01279 647 447, to book a consultation with myself or with one of our specialists. Let’s talk about how we can build a finance department that helps your business grow much faster.
Warmly,
Garry
You might also be interested in: Why you hire the wrong accountants – Insight Associates Limited
