Monthly accounts keep everyone on the ball!
Business Advisory Services Update
Accountants, by implementing a 52-week financial system for your SME clients, you will ensure that monthly financial accounts are prepared and analysed promptly, for the benefit for your SME clients, and will really keep them and your team on the ball.
The old system of an annual set of accounts and income tax return is outdated and of no material benefit for your client. Those accounts do not assist your client with the current challenges that they are facing.
With today’s technology and communication systems, accounting firms should be able to supply monthly financial accounts for each SME client.
The monthly financial accounts are best prepared in a similar format to the Budgets, with financial accounts been prepared for each independent activity.
The benefit is that you will have a set of accounts that you can discuss with the leadership team and the person responsible for that particular activity.
The actual vs budget report can be prepared each month, so that variations in income and any of the expense items can be examined and if practical remedial action taken.
For example, if your client is charging for labour and the budget was prepared on an 80% productivity for a category of team members, but in actual practice you find that the achievable productivity is only 70%, you could vary the charge out rate calculations. This gives your client the opportunity to rectify what would have been a disappointing result for the full financial year.
In the old system, this error would have continued for the full year with no opportunity to make up the lost revenue.
The KPIs for each business activity can be prepared and analysed to determine whether any changes are needed.
ESS BIZTOOLS has developed a range of product packages to assist Accountants to implement Business Advisory Services and virtual CFO services. To find out more, contact our Managing Director, Peter Towers, on 1800 232 088 or .
