A real alternative ...10th August 2008
In the early stages of a businesses life the founders are so busy just getting on with running and developing the business that they see "doing the books" as an annoying extra that has to be done when time allows.
Invariably this is on the kitchen table on a Sunday afternoon when there is some impending deadline - like the VAT return or to get numbers for the bank manager!
As the business grows the founders find they have less and less time for all of this admin and they employ a part-time bookkeeper or accounts assistant. The mentality does not change though and this poor sole is often pushed into the corner of the office and still just seen as an overhead.
What a huge missed opportunity!
"Doing the books" should never be seen as necessary evil but as an essential way to manage and add value to the business. This is not normally the case as the people who create and build businesses are often technicians who understand the work that the business does but not all of the aspects of actually running a business that does that work! Financial managementis an essential and critical part of the whole picture - the very foundation on which the business is built.
Just picture this. Imagine that you are the MD of a multi-million pound business - you've done it! - your business has annual revenues of £30m, maybe more. There you are sitting in your big office presiding over your success. Outside your office is a long corridor and at the end of it is a door with "Finance" written on it. If you have any sense you never go through that door - why would you? Inside there are a team of people dealing with all the day to day accounting and finance issues in your business. Receiving the post, paying the bills, collecting cash, paying the employees and generally counting the beans! Everything from an accounts clerk, credit controller, payroll clerk, to accountants and the like.
No - you don't need to deal with all that now (unlike you did when you were smaller) as you are a big business and you have people to do it for you.
Also, you have your Finance Director - he's the one in the know - he knows what is happening the other side of that door, and what's more he understands it!! He is your candid friend, your confidant. He has a grip on the numbers and can help you make quality decisions about your business. What would you do without him?
But back to know. Your smaller business where you are still concerned about the minute detail of every piece of paper - but don't really have a grip on what it all means.
Why should it be this way? Why does the small business have to make do and mend, or have a bookkeeper who is always a compromise and often just taken for granted and ignored. Why can't the smaller business have that wonderfully orchestrated finance team that the bigger guys have and then you can get on with running and developing your business - what you do best.
Well now with our OUTSOURCED FINANCE DEPARTMENTthe smaller business can have what the big boys get - no more compromises - now you can have the finance team that your business deserves - one that can add true value to your business.