Unlocking growth: applying large business management principles to SMEs
Business Advisory Services Update
A significant difference in management/accounting approach by large businesses, as compared to SMEs, is that many large businesses operate as a ‘group of small businesses’, under the control of an area manager who has an accountant and other clerical staff working for them.
This group controls all of the financial and commercial operations under the direction of head office policies.
Large businesses have a very strong desire to know key figures on a daily basis and the weekly profitability, including KPIs. This is the information that is used to help the manager run the individual business for which he/she is responsible, under the watchful eye of the area manager.
If there is an adverse result from the week’s performance, there is an immediate investigation to find out what went wrong and to fix it. This means that, by Wednesday or Thursday of the following week, a determination should have been made on what caused the problem in the previous week’s performance and that the problem has been fixed.
Accountants/bookkeepers who deliver Advisory Services can assist SMEs adapt this system in order for their business to grow. To find out more, contact us on 07 4724 1118 or email .
