Why you shouldn't rush to replace your accountant

03rd November 2021

A few years ago, an organisation I know lost its financial director.

When they went through his files, the other directors were shocked to discover that none of it made any sense...

At least, none of it made any sense to them.

The company’s financial information was recorded and organised in a completely idiosyncratic way. No one other than the former finance director could make head or tail of it.

That’s when I came on board, so my team could sort out the financial mess - and put in proper financial systems and processes which were suitable for a well-run company.

But there’s a lesson here for all companies.

You see, over the past few weeks, we’ve been talking about the “Great Resignation”. As the immediate crisis of the pandemic recedes, huge numbers of people are leaving their current positions or planning to do so over the next few months.

Some of those people are going to be from the finance function...

They may even be your bookkeeper or accountant.

It can be really disappointing when this happens. These are people who may have been with you for many years, and who are a valued part of your organisation. And replacing them may feel like a hassle.

So what do you do?

The key is not to rush to fill that position with someone of similar qualifications, doing the job in the same way.

Rather, take the opportunity to re-evaluate what the job really entails and how you want it done.

In some cases - as with the organisation I mentioned - you might discover that there are issues with your accounting function which will require serious attention to fix.

We’ve seen companies which have suddenly realised that their accounts were still being done on paper, or that nothing had been filed for months. It’s a wake-up call that their previous arrangements were perhaps not serving them well.

But more likely, you might realise that you have outgrown your previous provision - especially if your bookkeeper or accountant has been working with you for years.

Having one or two reliable, experienced people managing your accounts might have really suited you a few years ago, when your company was smaller.

But now that you’re much larger, you might need a broader range of financial skills at your disposal...

...People who can not only do straightforward accounts but can also put together proper budgets and management accounts, provide cashflow forecasts and help you arrange loans, cut costs or deal with the banks.

Or maybe you need access to better software and systems, because you’re processing many more transactions and a larger payroll than previously...

As the owner of a growing company, you might also appreciate having someone at your side, who can offer you a useful perspective on your finances and help you make good financial decisions going forward.

Most in-house bookkeepers and accountants simply don’t have the business experience or financial knowledge to do that, even if they’re excellent at their core job.

In short, it may be a good opportunity to refresh and upgrade your financial provision.

If you’re in that situation, why not consider outsourcing your financial management to us?

We give companies turning over more than £1-2 million the kind of financial management that corporates take for granted.

You’ll get access to the kind of financial team, software, systems and financial advice that you really need to grow - all ready to implement and work for you on Day 1.

To find out more about our Outsourced Finance Department and how it can help your business, simply email or call us on 01279 647 447.

Warmly,

Garry

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