Speaker: Jennifer Raines, MD, YRH Finance Team
What are the typical finance challenges SME business owners face as they grow?
Jennifer Raines: As the business grows. one of the first issues that often shows up is a deterioration in the cashflow in the business, and also a reduction in margins. This is often contributed to by out of date financial controls and ineffective and inefficient accounting processes and management information.
How can SMEs overcome these challenges?
Jennifer Raines: The first step in overcoming any issues and challenges in business is always recognising the fact that there's a problem and seeking the right help to get back on track. What most business owners don't realise is that their accounting function will need to change and look different as the business evolves and moves through the different stages of growth.
Jennifer Raines 2: What worked yesterday won't work today or tomorrow.
What are the most important accounting processes to have in place to enable growth?
Jennifer Raines: The most important accounting processes to optimise are those that impact cashflow and profit the most. We often see businesses, and it's a very simple thing, who don't adopt an effective credit control process. Not only do they not get paid on time by their customers, but they also don't know they aren't getting paid on time through a lack of reporting. Every business owner also needs access to good financial information to be able to make the best informed decisions and see what's happening in the business.
How can an SME put an accounting structure in place that will grow with the business?
Jennifer Raines: We know that getting the right accounting structure in place in your business isn't easy, especially when it's not your gig. You need to balance consistency and yet remain flexible. The issue when you're growing isn't just about adding more man hours into the function. It's actually about, how do you access capability, the right type of expertise, people that have been where you're going before, know what to watch out for and what to get in place. This is exactly why I set up YRH Finance Team and we've been helping clients manage this growth and the changing needs of their accounting function for over 14 years now.
