From time to time a business has to overhaul and rebuild its finance function.
Don’t put it off for a rainy day – you’re fighting with one arm tied behind your back if your finance function isn’t fit for purpose.
It’s going to be a game-changer – so, what do you need to think about?
Why overhaul your finance function?
Information and insight
Accurate and timely financial reporting is essential and an optimised finance function is not just about crunching numbers, it’s about providing useful financial information and insight into business performance that people take action on.
Enhance efficiency and productivity
Inefficient financial processes and outdated systems can slow down operations and increase costs. By overhauling your finance function, you can automate routine tasks, reduce manual errors, and free up your team to focus on other business initiatives. This boost in efficiency can lead to significant cost savings and improved productivity.
Reduce risks and improve compliance
In today’s regulatory environment, compliance is critical. A fit-for-purpose finance function can help ensure that your organisation stays compliant with all relevant regulations, reducing the risk of penalties and reputational damage. Additionally, robust financial controls and risk management processes can safeguard your company against fraud and financial mismanagement.
Steps to overhaul and rebuild your finance function
Define your objectives
Your objectives might include:
- Quicker and more accurate financial reporting
- Closer ties with all the other areas of the business
- Improved efficiency in processing transactions
- More effective credit control
- Improved cashflow
- Fewer queries from customers, suppliers and colleagues
By defining what you want to achieve, everyone will know where they’re heading and you can easily see if the objectives have been met.
Assess where you are at the moment
You know where you’re heading but where do you start from?
Look at:
- The skills and experience of the current team
- Workflows
- Technology being deployed
- Current pain points across your business
- Whether and how other parts of your business don’t help the finance team
Now you have a starting point and a destination. All you have to do is get there!
Invest in technology and training
Technology is the backbone of every finance function and cloud-based platforms offer accessibility, scalability and flexibility..
At the centre is cloud-based accounting software such as QuickBooks or Xero. But make sure you choose software that produces the reports you need and make sure all users are trained properly to use the software.
Look at which tasks can be sensibly automated. Adopt document management software, such as Dext or Autoentry for data entry.
If your sales invoices are produced in CRM software then invest in software that will import the sales invoices into your accounting software.
Much of the software you introduce will contain machine-learning code that will speed up data processing as you do more of it.
But right at the moment – be a little wary of the promises made about AI in accounting.
Streamline processes and workflows
Review and streamline your financial processes and workflows. Identify redundant tasks, eliminate bottlenecks, and standardise procedures across the organisation. Implementing better practices will improve efficiency and reduce costs.
Set a target for producing a monthly reporting pack within, say, five working days of every month-end and organise workflows to do so.
Reporting, data management and analytics
Information is everything so ensure the right financial reports are coming from your finance function in good time, going to the right people and being acted on to improve business performance.
If your financial data set is large enough to make the investment worthwhile then investigate analytics tools which can provide insight above and beyond what your accounting software can provide.
And from time to time, because businesses evolve, loop back to data entry and make sure it remains complete, accurate and up-to-date.
Can we help you overhaul and rebuild your finance function?
We help many business to bring their finance functions up to scratch and this is what they say when we do it:
Blue Dot Consulting went above and beyond in helping us navigate not only the transition to cloud-based accounting but also in leading our accounts team through a broader period of transformation.
Their deep understanding of our unique needs and challenges was evident from the outset. They provided unwavering support to our team, ensuring they felt confident and well-prepared for the changes ahead.
Senior finance manager
Projects range from:
- implementing QuickBooks or Xero properly
- becoming the finance team of a £15m business, helping them to develop an in-house finance department
- installing cloud accounting software for a global business, making sure the top team receives the management information it needs to grow profitably
We’ve helped a wide range of organisations – can we help you?
Call Michael Austin on 020 7125 0270, email info@bluedotconsulting.co.uk or simply pop in for a chat – we’re at Bedford House, Fulham Green, London, SW6 3JW.
Michael – @bluedotmichael
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Chartered Accountants – Bedford House, Fulham Green, London, SW6 3JW