“We need to take our accounting work by the scruff of the neck and bring it in-house, away from our accountants!”
The situation above was a little extreme but it’s the right direction of travel for many businesses as they grow.
Bookkeeping and accounting is a role that lends itself well to outsourcing (it’s a service we offer) but sooner or later, largely as a function of business growth, the time comes to bring your finance function in-house.
The building blocks of in-house accounting
You need to give some thought to:
- staffing
- training
- software and workflows
- management
- integration with the rest of the business
Building an in-house accounting team begins with choosing the right people.
I’d look for someone with experience of running a finance team who knows what it takes to establish a financial footprint within a business where there hasn’t been one previously. It’s a great opportunity for someone – so hold out for the right person.
And take good care of them, they’ll need a lot of support.
Workflows will change – for the better!
If you’re no longer outsourcing then your workflows, systems and process are going to change.
Expect a feeding-frenzy of getting hold of passwords for software and for your HMRC portal but take some time to figure out the best way of gathering the transactional data that needs to be entered into your accounts.
Everything can be done sooner than it was before and you now have the opportunity to share financial information with non-finance colleagues as it’s being generated.
Seize that opportunity – sunlight is the best disinfectant!
Finance should fit your business like a glove
This is the game-changer!
When you bring your accounting in-house you can mould it to fit your business as it grows.
Bear in mind that your accountants who have been doing the work for a long time will have their own, internal ways of doing their work. They’ll be doing it in a way that fits their business and this might not suit you.
There are four areas to take a good look at:
- data entry – bookkeeping in-house looks very different
- software – accountants have their favourites but you can change!
- chart of accounts – this is the DNA of your bookkeeping so make it bespoke
- financial reports – customise the ones your business needs, share them and use them
Take your time and build a framework that will evolve with your business
Can we help you bring your accounting in-house?
If switching to in-house is the right move then you need to get it right.
All of our people have worked in or run in-house finance teams so we know very well what they look like, how they work and what it takes to create a finance function that’s a well-oiled machine!
Our part-time / fractional CFO service might also offer some higher-level guidance and give you extra peace of mind as you navigate the transition.
So, if you know you’re in the wrong place at the moment, know you need to make a change and just need someone to show you the way then let’s meet and talk about what you want to do.
It’s free, it’s confidential and it’s a fresh pair of eyes and ears.
Give Michael Austin a call on 020 7125 0270 or email info@bluedotconsulting.co.uk
Michael – @bluedotmichael
Related links:
Overhaul and rebuild your finance function
Build a useful Xero chart of accounts
Complete your team with our Fractional CFO service in London
Chartered Accountants – Bedford House, Fulham Green, London, SW6 3JW
