Any organisation be it a small services business or a large manufacturing house requires specialist business services such as legal advice, financial consulting, PR and accountants. The first and most important business service that most UK businesses start to use within six months of their set up is accounting services.
There are many independent/ freelance accountants available in the UK and Financial services consulting firms usually offer professional services through their accountants. Accountants handle everything related to finance from collection, recording, analyzing, and also presenting companies’ financial activities. Moreover, they maintain books of accounts, budget for resources, carry auditing, financial investigation, taxation and offer financial advice. They play an important role in devising financial strategies as often they provide the data required to plan, forecast and make financial decisions. At the same time, this where accounting professionals draw the line. They offer to record your numbers for filing tax returns and managing audits but a financial consultant steps in at this stage to help you make most of these numbers to drive your business forward.
Financial Reporting and Financial Strategies
When we refer to Financial Management Services in the UK we are often talking about financial reporting tasks, usually in a specified period of time. Financial reports offer shareholders accurate details on the current finances of the company. Moreover, these records contain details comprising of revenues, costs, returns, equity and cash flows.
What information is made available by accountants?
There are several financial reports that can be used to gauge the financial health of a company.
- Income statement
- Statements of financial position or balance sheets that give valid information with regards to the available assets, capital and liabilities.
- cash flow statements that depict inflow and outflow of cash across and within the organisation
- statements of shareholders’ equity, that derives the amount of capital owed to stakeholders
Are you making the right use of this financial information?
Most accountants will draw the line at providing these numbers and its often left to the business owners to make sense of the numbers. More mature businesses will have a financial reporting, analysis, planning and forecasting process and financial consultants to help with that process. This planning and financial strategy process is important for any business as it –
- Provides valuable insights into the health of the business, is the business reaching it’s revenue and profitability goals? Where can it reduce costs?
- Helps formulate financial growth strategies by identifying the most profitable parts of the business operations
- Plan for the future by helping create various “what if” scenarios
- Enables room for improvement by making a comparison of current financial performance with past metrics.
- Allow financial directors or owners of the company to make informed decisions about the business
Financial services consulting firms or independent business financial advisors can thus help spot opportunities for your business to grow or reduce cost and improve profitability. There are more measurable benefits of financial consulting services.
Also, knowing the health of the business gives the business stakeholders to present the business with more confidence. This could be to showcase performance to their own shareholders, the board of directors, venture capitalist or potential buyers.
Don’t forget your financial reports one the taxes are filled. Make use of the financial records provided by your accountant or financial services firm to take informed decisions about your business. Financial consulting firms or independent financial consultants who understand your business can help make sense of the numbers and come up with a robust financial strategy for your business.