The department for business innovation and skills recently commissioned some research by ICAEW/ACCA/Ernst & Young to determine the quality of financial management in SMEs.
The September study suggests that entrepreneurs should be questioning themselves about the following
Post Start-up phase:
– Does your business plan and financial forecasts reflect the next stage of your company’s growth ?
– Are you monitoring cashflows ?
– Do you have a system for budgeting sales and costs and comparing them with actual performance ?
– Does the business have sufficient finance to meet its needs and if not what are you doing about it ?
– Do you produce regular management accounts ?
Post initial growth stage:
– Is your finance team managed by a professionally qualified accountant ?
– Does the board regularly review the risks faced by the business ?
– Are budget and cashflow projections produced and discussed by the management team ?
– Are monthly management accounts produced in time to be useful in assessing business performance ?
– Are accounts audited or subject to an assurance report for key stakeholders ?
– Do you hold regular meetings with finance providers to review business plans and financing options ?
How did you answer?
Unless you have answered “Yes” to all of these questions, you have a host of tangible and achievable opportunities to greatly improve the financial management of your business. Whether your operation is running well or could use some assistance, as our core business, we are expert in helping all types of business’ maximise their efficiency, profits, and financial security.
Call us today for obligation free advice about your situation.