Many smaller businesses and SME’s can’t afford a Full Time (or even in some cases a Part Time FD) but they need help with:
- Business Plans
- Budgeting and Forecasting
- Cash Flow Management
- Buy or Rent decisions
- Capital Investment Appraisal
- Accounting Procedures and Systems
- Business Strategy
- Business Funding and Investment
In addition to the internal requirements for the business there are key reason why small businesses expect more from their accountant.
- In recent years we have seen a huge growth in Cloud Accounting Systems such as Sage Oneand Xero and automation of payments and bank feeds, its no longer enough for accountants just to provide book keeping or year end accounts and tax.
- Business owners want personalised, tailored partnerships with their accountant who need to be true business experts.
- HMRC and Companies house has incorporated user friendly, easy to use forms online.
According to Accounting Web…. Half the firms entering the Practice Excellence Awards this year (PEA15) offer management information as part of their service for business clients – up from 33% in 2014. One reason for this jump is that the approach has been shown to have a very beneficial effect on client satisfaction and practice profitability. Probably because it serves a fundamental client need.
Virtual FD’s fill this gap because:
- You only pay for what you need
- There is no employment contract
- It provides access to higher level of expertise and your covered by the professional indemnity
- Tighter regulations for Accountants in Practise.
But here is the key question you should ask your accountant – Have you actually ever worked in business or been an FD? It seems bizarre to me that so many accountants offer this service and yet have no experience as an actual FD.