Adrian Goodman.
Big business is exploiting its financial data to give it a competitive advantage. SMEs can do the same but, says Adrian Goodman of PPX Consulting, many are currently missing out.
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IN THE world of small business, finance is often seen as a necessary evil. You hire an accountant to file your accounts, keep HM Revenue & Customs happy and make sure payroll runs on time.
It is compliance-driven. Box-ticking. Something you do because you have to… or at least because you think you have to.
In larger businesses, it could not be more different. Finance is not just a cost of doing business; it is a strategic asset. Big companies invest tens, even hundreds, of thousands into financial strategy, forecasting, analysis and performance management.
Not because they have to. Because they know it gives them a commercial edge. So why the disconnect?
In small companies, the role of finance tends to begin and end with statutory obligations. But in big companies, finance helps to steer the ship. The finance function does not just report the numbers; it interprets them, challenges them and uses them to shape decisions. This can add far more value to your business than you may realise.
This is where functions like financial planning and analysis come into play. They exist to ask ‘What if?’. What if we changed our pricing model? What if we shifted sales resources? What if we invested in a new market?
These are not hypothetical questions. They are real business levers, backed by data and scenario planning.
Many small business owners fall into the same trap: to improve profit, they focus on generating more sales.
Yes, revenue matters. But every pound of sales comes with a cost – there is always a margin.
Cost savings, by contrast, drop straight to the bottom line. A pound saved is a pound earned.
But even that approach misses the bigger picture. Because the real value of a strong financial function is not just in finding savings or chasing sales. It is in producing data and making that data meaningful.
When you truly understand your business – not just the top line or bottom line but also what is driving those numbers – you gain the power to make smarter, sharper decisions.
Finance becomes the lens through which you see your business more clearly. And from there? You are not just tweaking. You are transforming.
When finance becomes more than just an admin task, when it starts feeding you insights, you start seeing the business differently.
You spot underperforming products before they drag you down. You allocate your resources more effectively. You make decisions with confidence instead of gut feel.
These are not marginal gains. In many cases, the right financial insights have reshaped business operations entirely, turning struggling companies into thriving ones merely by putting strategy before instinct.
Of course, most SMEs do not have the budget for a full-time finance director or FP&A team. But that does not mean you cannot adopt the same principles.
Work with an accountant who can go beyond compliance. Look at forecasting tools, performance dashboards and scenario planning, even if they are simple to start with. Build regular financial reviews into your business rhythm.
Because finance is not just about knowing where you have been. It is about figuring out where you could go next… and how to get there.
Adrian Goodman is managing director of PPX Consulting and author of Achieving Profitable Growth: Use the ‘Four Points of Control’ to grow your profit and your business. Available on Amazon.
Online Excel training at ppxtraining.co.uk/practical-excel-skills/
Find out more at
01536 904 886
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