Our turnaround and insolvency advisors hear many things when talking to new clients but the most common complaint we hear is: "my accountants are useless, we have been asking for management accounts for months", we don't know if we are making or losing money"!.
Whilst it is hardly fair to blame everyone else when things go wrong we DO have some sympathy with these views. Often accountants will counter the cry by complaining the client does not provide information on time. So there are faults on both sides
The real problem is management of expectation. Accountants should not claim they will produce monthly management information (MI) if that is not what they re set up to deliver. If they simply produce annual accounts and tax returns, then all well and good, but don't sell the monthly service if you cannot deliver, this creates ill feeling and is poor marketing for your practice.
Likewise directors should not assume, they should specify precisely what they want to be provided with and sign an agreement to deliver their side of the bargain.
Well the fact is this is not an ideal world and we still get daily complaints and requests for help. We are not set up to deliver this service, we do turnaround!
So the really good news is we have teamed up with The FD Centre to provide a high quality service, ranging from monthly management information provision to acting as a finance director for your business. FDC has 45 accountants with a business background right across the UK.
Additionally we have a long term relationship with The Outsourced Finance Department and Insight Associates
who can handle all aspects of bookkeeping through to acting as an FD and "interpreter" for the entrepreneurs amongst you who want plain English accounting help.
We are very pleased with these relationships because we often rescue companies only to see them fail when the financial reporting fails. With good MI the problems will be spotted sooner and then the board can act sooner.
Banks and investors NEED quality MI to continue to support companies through these uncertain times, so if you are having problems with MI please consider getting proper advice.
I strongly recommend both our esteemed colleagues. If YOU NEED good quality financial information get in touch with me.