How We Transformed Our Financial Management08th August 2016
“I knew what was happening in my own business, and my intuitive sense was that it was profitable,” says the business owner.
That was when we came on board, and quickly discovered that his intuition was correct. The company was turning a small profit.
What had happened was typical for very fast-growing companies (since this one had started in the owner’s own bedroom, it had grown to 10 or 12 employees, and a turnover of nearly £1 million). They outgrow the financial people and systems that suit them early on.
If this story rings a bell it’s because I’ve actually told it in a previous email, but I’m repeating it now because so often, people ask me: “What do you actually do? How are you different to an accountancy firm?”
So today, for a change, I’d like to tell you what happened next, when they hired us as their outsourced finance department. While I can’t reveal the name of the company or its owner, I recently reached out to him to hear his perspective.
Then it was time for change….
“We were taken back by the financial information we suddenly received,” the business owner told me. “It was fast, it was accurate, and I understood it.
“For the first time, we really knew how we were performing, what was profitable and which of our products were selling.”
“We became a lot more strategic, and I had a lot more confidence in the decisions we were making – and the numbers they were based on.”
In hindsight, he said, “We didn’t have enough financial information to make good decisions with our accountant.”
“The result has been that we’ve taken several large steps which we would never have been able to take otherwise. Our accountant would never have known about any of those options.”
“Now we can plan ahead,” he said. “You challenge us on how we manage our financial affairs. And what I get as a business owner is an overall sense of having a steady hand on the rudder.
We give the same service to many other companies who have ambitious growth goals, and who need their financial management to evolve in tandem.