A good management accountant is worth their weight in gold. Not because they will generate sales, or improve your PR, but because they will keep you focused on what is really important to the long term survival of your business.
It doesn’t matter whether you are a sole trader, have a turnover of £100k, £100M, or are the Chancellor of the Exchequer, the same principles apply:
Create Key Performance Indicators that are relevant to, and understood by, all those involved – and don’t just focus on the financial KPI’s. Take advice on KPI’s, you need to be objective.
Identify what KPI’s are leading indicators, and which are lagging indicators.
Use qualitative and quantitative measures. Ask for suggestions, and not just from those within your organisation.
Be aware of how KPI’s affect people, and how change makes them feel.
Know the difference between making an investment, and incurring an expense.
When the world around you appears to be losing its way, make sure you have someone who is prepared to talk to you about the reality of your financial priorities.
A good Management Accountant can sit at the very core of a business and drive it forwards. Such a person can be worth their weight in gold (which is precious in this day and age to say the least!).
Many are both under valued and under utilised by companies, with words such as ‘KPIs’, ‘Strategy’ and Forward Thinking’ sitting at the centre of what a good Management Accountant is taught, believes in and has the desire to achieve for their business.
Let them loose to do what they are meant for, monthly reporting is but the tip of the iceberg, and if your Management Accountant is worth that ‘weight in gold’ the dividends will soon become apparent.
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So you've read what I think - Ed Hart of Your Financial Business Support, otherwise known as YourFBS.
If you'd like to know want I can do for you and your business, take a look at What I Do, email me, or call me on 07913 895798.
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