3 minute read
FINANCE
Are Professionals Worth It?
No doubt every road transport company owner in the country is currently reviewing his/her cost base and considering all non-essential spending so that if and when a downturn occurs they are best placed to face financial challenges. Non-essential spending usually encompasses a host of additional services that can and should add value to a business, but if the bottom line is under immediate and severe attack such as expenditures can be off-set, allowing the owner to either totally ignore or attempt to allocate some of their time to doing the job themselves.
A good example of this is the financial management and financial planning in a business. If the book-keeper is maintaining adequate data, producing invoices, paying suppliers, the banks being reconciled and annual accounts organised and filed on time, where is the extra benefit to the business of having detailed financial monthly data? Particularly when those running the business and know the ups and downs of all activities, managing all functions, even when the real pressure is on!
In a recent case an accountant came across a small business that had incurred a €400,000 external loss and a €100,000 internal loss in the one year. It only came to light when the annual accounts were being produced and was down to the simplest of internal controls having not been implemented or suggested. The owner had been present through the period but lacked the guidance of a professional; implementing basic control systems and how they are to be monitored.
Professional advice in any business is not just for compliance but as a means to see where can the business do better. If the business is at the peak of the sector, then professional advice can be benefitted from on how to maintain or leverage best wealth generation results from that position. The only certainty in transport and logistics is that change will happen. Being in a position to benefit from change arises in businesses that have the best resources available to them to allow that to happen.
Few of us can be good at everything, some that can come close to it but normally the best people for the job is the person that has the qualifica- tions, experience and interest. Most people will give it their all, no matter what they do, and if one can get that commitment and that both parties can benefit from the results, then a team can be gathered around the table that will push the business forward regardless of the economic conditions emerging.
To answer the question professions are only worth it if the fit of expertise, experience and knowledge best matches what is required and best avail of their professional advice in the manner with both parties working together for a common goal. That’s applicable to financial, legal, taxation or engineering advice and expertise. It’s a simple question at the end of the day, did the fee charged make the business more profit in the short, medium or long term or did it save it from losses?
Text: Donal Dempsey – donal@fleet.ie All-Star Transport Training Company of the Year 2021 Transport Manager CPC
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