A financial lesson from the Premier League

A financial lesson from the Premier League

The Performance Analyst.

They watch every match live and again on video, and study extensive match data. Then they pull together a comprehensive report for the coaching staff, specifying the players’ strengths and weaknesses.

Armed with these immediate insights, the manager can work with their players to improve their performance next time they play.

It’s very rigorous. But imagine a slight tweak to this job description…

Instead of providing their insights within a day or so, the Performance Analyst delivered them two months after each match.

It wouldn’t be very helpful, would it?

The players wouldn’t remember the mistakes they made eight weeks ago…

By then, there would be new problems to rectify – but no one would know about them until too late…

Any advantages would be squandered, because the information would be two months out-of-date.

It’s just not actionable, because the information isn’t current.

Now let’s talk about your company’s “post-match analysis”…

You should receive this too, in the form of financial information.

Those are the numbers that tell you exactly how your business is performing…

For example, how individual players (ie your products or services) are doing, and your financial strengths and weaknesses.

Corporates receive this monthly, in their management accounts. Because the numbers concern the month just ended, they are highly relevant and useful. Management can identify any problems almost in real-time, and also capitalise on successes very quickly.

But if smaller companies receive management accounts at all, they are often produced with some delay, weeks later. (In the worst case scenario, you only see your accounts once a year – showing basic information that’s 12 months out-of-date!)

This might be because the management accounts aren’t used in the way they are intended, to make better decisions for your business – so no one prioritises them.

Or perhaps your accountants struggle to get the information they need from you to produce your management accounts on time.

Either way, the result is the same. By the time these financial reports reach you, the period they refer to feels like ancient history. So it’s very difficult to act on the information they contain.

I wanted to bring this up, because in most of my emails, I talk about the importance of getting accurate financial information in order to run your company with confidence.

But to be useful, accurate financial information isn’t enough. It has to be timely as well.

If that’s an area where you struggle, we can help.

When we work together, we start by setting up all the financial systems and processes your business needs in order to manage your money efficiently. So for example, all your transactions are processed promptly – ensuring that data is available for our reports every month.

The truth is, we still rely on our clients to help us get the data we need. For example, you might have to ensure you have properly recorded work-in-progress, or documented pay rises so that your payroll is accurate. We can’t do this for you!

But where necessary, we can work with you to make sure that these processes are in place, making your business more efficient and disciplined.

Once we have comprehensive financial data, we turn that into a bespoke report on your company’s financial health every month. Your management accounts are tailored completely to your needs, recording the information that’s most useful to you.

Finally, we work closely with you – the owner or CEO – to make sure you understand the information in the monthly management accounts, answer any questions, and use the analysis to make better decisions about your company’s future.

In short, we’re both your Performance Analyst and (financial) coach, rolled into one…

…But rather than helping you score more goals, we’re here to help you grow faster and maximise your profitability.

If that’s the kind of financial support you can use, please get in touch with me today. Simply hit ‘reply’ to this email or call our office on 01279 647 447 to find out more about how our outsourced financial management service can help you.

Warmly,

Garry

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In this blog archive our Managing Director, Garry Mumford simplifies all things financial and shares with us a lifetime of practical financial business advice.

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