Adrian Goodman.
A growing business needs strategic financial leadership... which will not come from the company accountant, says Adrian Goodman, of PPX Consulting.
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ONE OF my first articles for this magazine attempted to answer the question Does my Business Need a Finance Director?. In it, I explored the trigger points and thresholds at which, I believe, a business would benefit from the services of a finance director or chief financial officer.
However, I have also worked with many SME businesses where they conflate the terms CFO and accountant and assume that once an accountant has been appointed, they can wear both hats and support the business equally well with all financial objectives.
Many SME owners assume their accountant is handling everything financial in their business. After all, they prepare the accounts, file tax returns and maybe even manage payroll.
But while accountants play a crucial role, they are not the same as a CFO or a FD. The distinction is important, particularly for growing businesses that need more than just compliance; they need strategic financial leadership.
A traditional accountant ensures that financial records are accurate, tax obligations are met and reporting deadlines are not missed. This is essential but it is primarily focused on the past – what has already happened in your business.
A CFO, on the other hand, looks ahead. They use financial data to shape strategy, identify risks and opportunities and ensure the business has the financial structure needed for sustainable growth.
Without this forward-thinking approach, businesses often find themselves reacting to financial challenges rather than proactively managing them.
Most businesses start with an accountant handling tax and compliance and in the early stages that is often enough. However, as a business grows, financial complexity increases.
Common signs that a SME needs more than just an accountant include:
Cash flow unpredictability A CFO can help forecast cash needs and structure funding appropriately.
Rapid growth Scaling a business requires financial planning beyond annual accounts.
Profitability concerns A CFO analyses margins, pricing and cost structures to improve bottom-line performance.
Investor or lender expectations If external stakeholders are involved, financial strategy becomes even more critical.
Operational inefficiencies Financial leadership is not just about numbers; it is about ensuring resources are allocated effectively.
Many SME owners experience frustration when their business outgrows its existing financial processes. They may find that despite strong sales, profits are not where they should be or they are constantly facing cash flow pressures.
This is where a CFO mindset can make all the difference. A CFO does not just report on what has happened. They drive decisions. This includes:
Financial forecasting Anticipating future financial performance and cash flow needs.
Strategic planning Aligning financial decisions with business goals.
Performance analysis Identifying the real drivers of profit and loss.
Funding strategy Determining the best way to finance growth, whether through reinvestment, loans or external investment.
Risk management Ensuring the business is financially resilient and prepared for challenges.
Hiring a full-time CFO is not feasible for many SMEs but that does not mean they have to miss out on financial leadership. Many businesses benefit from fractional CFO services – outsourced financial expertise tailored to their needs and budget. This allows SMEs to access strategic insight without the cost of a full-time executive.
If your business is growing and you feel you need more financial clarity, it may be time to move beyond traditional accounting and bring in strategic financial leadership. At PPX Consulting, we help SMEs to bridge this gap, ensuring they do not merely stay compliant but thrive.
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
ppxconsulting.co.uk 01536 904 886
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