Running and growing an innovative business involves managing a range of priorities and challenges. In the early days, it often falls to the CEO (or their partner!) or a junior finance professional to take on the role of the finance function.
The success of a business, however, depends on the accurate forecasting and management of budgets, a sustainable flow of cash, and the ability of existing resources to correctly balance the books, as well as the development and implementation of the financial strategies required to grow. This is not a job for the CEO or junior finance professional. To do all this effectively requires a blend of finance and accounting skills from a junior bookkeeper to a finance director.
Businesses that invest in their finance function are more successful
The most significant benefit of using an accounting outsourcing provider like Isosceles Finance is that the business can call on a flexible mix of resources to run their finance function and drive the company forward. Significantly, as the business grows the skill set needed to drive that growth can change.
Perhaps an FD is required for one day a month, a Financial Controller once a week and a bookkeeper twice a week. Or maybe another combination. Alter alternatively you may just need additional hands at month-end or year-end. No matter, an accounting outsourcing service can be tweaked to your exact requirements and turned up during a busy time and turned down when it’s quieter. No recruitment costs and no HR worries.
Significantly specialist expertise in the spheres of, fundraising, preparation for exit and international expansion, for example, will be available as and when required.
Businesses that invest in accounting outsourcing and the right mix of finance and accounting skills reap the rewards
- They can provide a professional, credible point of contact for their customers, suppliers, investors and potential acquirers.
- Benefit from up-to-date industry insight and best practice.
- Access the latest accounting technology which offers enormous potential for efficiency and insight; a business needs to be operationally well run to scale.
- Comply with legislation and taxation, avoiding miscalculations, unpaid invoices and fines.
- The leadership team will have access to high quality, relevant and timely management information (plus interpretation) which improves the decision-making process.
- Companies that use an accounting outsourcing service have access to a seasoned part-time finance director – all the skills of a full-time finance director without the cost or commitment.
- Access to a ‘trusted friend’; someone who can interpret the numbers and direct the strategy. Someone who is not afraid to ask the difficult questions.
- The business will be a more attractive investment proposition when seeking funding from investors.
- Investors will be reassured that their funds are in safe hands, and the management is focused on growing the business.
- You will be able to prove your business is well run and may achieve a premium valuation.
The gap between the skills an SME can access/afford to have in house versus the skills they need to help drive their business forwards can be huge
An SME must allocate funds to the recruitment, training and retention of finance staff to ensure they not only meet the needs of the business today but that they anticipate the needs of tomorrow. Take the finance director role as an example. The skillset of a start-up and an operational FD is vastly different to that of an FD who can identify cost rationalisations or one who can drive growth, and will be different again to the FD who specialises in maximising shareholder wealth on exit.
By engaging an accounting outsourcing service provider like Isosceles, the business will benefit from the right blend of finance and accounting skills. The management team will have time to focus on core business activities; product development, customer experience, supply chain and profit maximisation.
Growing a business is not easy, but without experienced financial know-how, it will be almost impossible.
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