3 minute read
ACCOUNTANCY
Can you teach
an old dog new tricks?
The key is to have an open mind; to be prepared to consider a new way of tackling a problem; to be prepared to change.
Nicholas Gratton Client Director
We have all heard, and probably said, such things as: you can’t teach an old dog new tricks; stuck in a rut; set in their ways. All of these paint a picture of a person that has developed a way of working that may well have been efficient but over time things have changed yet the way of working has remained the same.
Whilst there may be nothing wrong in sticking with a tried and tested methodology, you can run the risk of missing out on the opportunities offered by a new approach.
By cherry picking those ideas and methods that have been developed by others that are most suited to your business can keep your practices refreshed and up to date. Think about it, if your competitors are evolving new ways of tackling a problem will you lose business because of it?
When I meet clients to discuss their accounts and their tax bills there is the opportunity to talk about much more. We can review the performance of the
business, make suggestions or provide recommendations that I have seen from businesses in the same sector.
After merging with Randall & Payne, it has become obvious to me that my Little & Company colleagues and I need to be more open to change! Working smarter and using technology will continue to help us get the job done, making it easier to identify risks and opportunities for clients.
An obvious example is the less paper working environment. I would like to say paperless but the merger of the two firms and the mountain of files we have brought with us has had a big impact on the overall “match statistics”, at least until a lengthy process of scanning the files has been completed! Randall & Payne have been investing in working in a shared electronic manner utilising the flexibility offered by the cloud for some time. The impact of the Coronavirus pandemic has only served to accelerate that process to enable a safe working environment to be created to ensure that client service has been maintained.
This “old dog” is determined to embrace the possibilities on offer; to have an open mind.
Contact Nicholas for more information by emailing nicholas.gratton@randall-payne. co.uk or call 01242 776000.
Bite-Sized Thinking
› Flexibility and the willingness to embrace change will keep you ahead of the competition › Even a change will be positive and help you achieve continued success
To find out more about any of the topics discussed in this article, visit randall-payne.co.uk
Results today,
consequences tomorrow
I am calling this the democratisation of forecasting, as the ability to produce a model and a forecast efficiently and cost effectively means it is now available for all businesses.
There have been rapid developments in the use of cloud based technology for the finance function to the extent that there is every reason for any business of any size to have a financial model and a forecast.
The key benefit this brings is foresight, allowing business owners to see the consequences for future cash balances, liabilities and profits of current results. This allows better planning for investment, payments to shareholders, recruitment, innovation, growth and so forth as well as focussing the mind on corrective actions that may need to be taken.
My clients have described it variously as “removing the blindfold”, “showing me the way ahead” and “demonstrating the consequences for the future of the way the business is performing today”.
Business is ultimately about winning in the marketplace and a fluid financial model and forecast can contribute greatly to getting and staying ahead of competitors. It is as close as you will get to a crystal ball for your business finances! The two areas can bring great insights.
The financial model will set a benchmark for the core business activity and focusses on understanding the interactions between sales, costs of sales and gross margin. This is basic stuff but I am surprised by how often it is not well understood and often the underlying book-keeping is not robust enough to support a full and accurate analysis. It is the heart of the business and a clear understanding and target can add much to performance.
Diagram illustrating how acting on a forecast drives change
