SMEs are the unacknowledged lifeblood of our economy, accounting for 99.9% of the business population and half the turnover of the private sector. Many of these enterprises are working extremely hard on growth and don’t have the resources to employ a full-time financial controller. It’s an aspiration for the future but not currently affordable. However, regardless as to the stage of development a business has reached, expert financial advice is essential for making sound business decisions.
Like any other essential business service, if a company cannot accommodate it in house, the answer is outsourcing. There are many benefits a small business will miss out on unless it follows this path. Here are just five of them.
1. Access to Experts and Technology
An outsourced finance director will not only have expertise, experience and knowledge of the current regulatory and legislative landscape but will also have access to the most up to date financial software, relieving you of the burden of investment and upgrades. The service comes as a multi-benefit package.
2. Sophisticated Reporting
It is hard to run a successful business without access to comprehensive analytics. Even if your software provides the facility, you will still need a qualified professional to process data which can then be used to generate management accounts, cashflow forecasts, monthly budgets and a regular review of key performance indicators. Outsourcing these vital functions allows you to focus on the daily conduct of the business, knowing that the broader financial picture is being managed to optimum effect.
3. Compliance
Many SMEs come unstuck in the face of today’s considerable compliance requirements. Not only must financial information be recorded and reported in the correct form stipulated by legislation, but its submission is always subject to strict deadlines. Failure to meet those deadlines can result in fines and other penalties. A poor record of reporting can also have a negative impact when you are seeking funding in the future. For an outsourced finance director, the compliance regime is all in a day’s work.
4. Accuracy
It is not only poor sales performance that can damage a business. Inaccuracy in accounting can have a widespread effect not just in regulatory terms but also in budgeting and in establishing an accurate picture of the company’s assets, liabilities and overall health.
5. Time Saving
In a growing SME neither you nor your existing personnel have the time to perform these vital functions. You are consumed with sales, marketing and product development. Keeping your finances in order is essential and appointing an outsourced finance director saves you time and money but gets the job done.
For optimum financial outsourcing solutions, please contact Neon Accounting today.
Call 01926 311746 or email suki@neonaccounting.co.uk