<< Back to Grapevine Index

The secrets of success

Behind every successful business are good financial controls. These ensure that good records are maintained to allow the business to be managed effectively.

Good financial controls are a prerequisite for success explains Tracey Nicholls of WKH Chartered Accountants and Business Advisors.

The elements of a good accounting system include:

• Identifying the areas that need to be monitored. Be clear about the areas you need to monitor so that when you introduce an accounting system, it will be able to accurately produce the reports you need. Understanding the key performance indicators for your business is an essential element in managing your business. Talking to other managers in the same type of business as yours, your bank manager or your accountant may help to get a perspective on what to measure and how to go about it.
• Generating the information needed quickly and accurately. The system needs to be simple to operate so that it can be easily delegated and so that reports can be generated regularly.
• Ensuring that the right people get to see the reports.
• Interpreting the reports. One of the most valuable tools for interpreting financial reports is comparing actual results to a budget.
• Taking action. Meet to discuss the reports in a regular, timely manner and minute clear action points to ensure that the business reacts to the information you have.

Tracey Nicholls is an Associate of WKH Chartered Accountants and Business Advisors.

Contact her on 01763 247321 tnicholls@wkhca.co.uk wkhca.co.uk