10 Duties of the Accountant/FD in SME Business

The role of the accountant or finance director will vary between industries and the size of company. As a general rule the smaller the organisation the more general will be the virtual finance director’s work; whereas in larger businesses the different aspects of finance work will each be covered by accounting specialists.

The finance specialist in a SME business will therefore take responsibility for different tasks that may include work associated with the management of the business. This variety of work may not be enjoyed by finance staff in large corporations.

Within the small medium business (SME) sector the typical workload of an accountant or virtual FD may include:
1. Preparation and reporting of monthly management accounts and year end results.
2. Identification of variances from plan and recommendation of corrective actions to recover from any shortfall against profit projections
3. Taking responsibility for preparing business plans, annual budgets and cash flow forecasts
4. Maintaining control of accounting systems to ensure timely, accurate and complete processing of financial data in accordance with internal procedures
5. Overseeing the management of the purchase ledger and credit control functions.
6. Ensuring all Balance Sheet accounts are reconciled regularly and take action on any discrepancies identified
7. Implementing on-going control of cash including regular (weekly, monthly) reconciliations of bank accounts
8. Contributing to the maintenance of business wide systems and procedures to ensure good corporate governance is adhered to
9. Filing all statutory returns
10. Training/coaching others within the business and effectively communicating with all stakeholders

UK Money Laundering Regulations

On 15th December 2007 new regulations on money laundering will come into effect in the UK.

For money laundering purposes all 'external accountants’ must be supervised by a designated Supervisory Authority. The definition of an 'external accountant' being:

“External accountant” means a firm or sole practitioner who by way of business provides accountancy services to other persons, when providing such services.

David Willetts is regulated by the Chartered Institute of Management Accountants (CIMA), a professional body designated by HM Treasury and meets the requirements.

The Money Laundering Regulations can be read here.

Business Control

The communication channels between the business owner and the accountant may not adequately satisfy the concerns and frustrations experienced by both parties.

The business owner may feel inferior arising out of a poor understanding of accounting terminology, accounting systems or legal responsibilities; whilst the accountant may forever be awaiting responses to queries and consequently reacting to situations and forced to complete work immediately prior to the deadline.

In this environment the business bookkeeper may be able to resolve some issues but if deep seated concerns exist that distract from the growth of the business, then professional advice should be sought.

A simple exercise is to check if you are REALLY in control of your business.

Do you know understand all the numbers in your Balance Sheet? Are reasons for lower profits or poor cash flow known?

Take the free Business Health Check today.

There is nothing to lose but much to gain.

If you require further help in this matter please contact DAW Consulting.