Be The Expert - Virtual CFO Services

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Welcome to this update on ESS BIZTOOLS ADVISORY SERVICES NEWS.

BE THE EXPERT – VIRTUAL CFO SERVICES

A significant difference in “Management/Accounting” approach by big business as compared to SMEs is that many big businesses operates as a “group of small businesses” under the control of an area manager who has an accountant and other clerical staff working for him/her.

This group controls all of the financial and commercial operations under the direction of head office policies.

The big business has a very strong desire to know key figures on a daily basis and the weekly profitability including The Key Performance Indicators.  This is the information that is used to help the manager run the individual business that he/she is responsible for 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/Thursday of the following week a determination should have been made as to what caused the problem in the previous week’s performance and that problem has been fixed.

Compare this to what happens in most SMEs – it would be a very rare occasion at present that an SME is receiving input from their accounting/bookkeeping firm on a problem that occurred in the previous week’s performance.

The system of the weekly performance/profitability reports keeps management informed of what has happened and this is one of the key systems that ESS BIZTOOLS is keen to have bookkeeping/ accountancy firms implement for the benefit of their SME clients.

At the end of the month, monthly Financial Accounts should be prepared for each business operation with a comparison to budget and there would be monthly Key Performance Indicators and Business Metrics prepared.

This is the process daily, weekly, monthly and then it is repeated again for every month thus insuring there is a 52-week of the year accounting process.

This does not mean that the accounting firm has to be intricately involved in each operation.  The key thing is to set up the system and for the preparation of the daily reports a team member within the client’s team would be responsible for the report but the accounting firm should ensure that they are included on the distribution list for that report so that they can monitor that it has been prepared and react to any adverse results.

Upcoming Webinars

Why not join us for a free complimentary webinar to find out more about the product packages produced by ESS BIZTOOLS ton assist Bookkeepers and Accountants to deliver advisory services?

• Friday 19 April 2024 at 12 noon AEST – Advanced Product Package Webinar (Level lll) –to register click here
• Monday, 22 April 2024 at 1:30 pm AEST – Financial Forecasting Product Package (Level IV) – to register click here
• Wednesday, 24 April 2024 at 4:00 pm AEST – Advisory Intro Product Package (Level l) to register click here.

Please do not hesitate to contact us if you would like more information on advisory services that bookkeeper/accountants could provide to SMEs, not-for-profit organisations, charities, sporting organisations