When KHT started working with MJA, the Directors were focussed on delivering a superior service to their clients. As a consequence, the business was growing.
Whilst they had an internal bookkeeper, there was no one in the business to focus on core financial matters or financial strategy. Further, there was no system of monthly management reporting. This meant the Directors were not certain of how they were tracking with cashflow and profit month-to-month.
Like any growing business, cashflow needs to be managed as profits are injected back into the business. Key cashflow items, such as tax payments, weren’t always budgeted or planned for, leading to some surprises at tax time.
- MJA needed an entire finance function to:
- Devise and execute a financial strategy
- Implement an appropriate system of financial control
- Ensure all administrative tasks are accurate and completed in a timely fashion
- Select and manage the appropriate financial tools.
As for most small businesses, employing a full team to perform this function was not an option; nor did it make sense.
The Directors wanted to focus on delivering to their clients, but also wanted to have a sound financial underpinning.