Businesses whose finance functions project above and beyond their primary purpose tend to see greater levels of growth according to a recent report by the ACCA.
Based on interviews with eight chief financial officers and financial controllers, the report found that the finance function contributed significantly to the business planning of these companies, playing “a central role” in achieving 70% growth over three years.
The finance function was initially utilised in only its’ most basic principle, however in most cases it was originally an accounting role but as business growth increased it evolved to encompass a more strategic purpose.
In these cases the remit of the finance function was almost always multifaceted, having diversified to contribute to periods of increased growth.
This correlation between diverse financial function and increased growth can also be applied to businesses which are experiencing signs of distress due to influences such as poor cash flow, tax pressures or low levels of demand.
Taking full advantage of the variety of opportunities that a diverse finance function has to offer can provide a business with an integral insight into potential signs of business distress that may otherwise go unnoticed.
Taking action at the earliest signs of trouble can prove to be the difference between rescue and closure. Get in touch today for expert tailored professional advice and solutions.