Key (financial) reporting structures including finance team staff and functions, systems used (finance, CRM, pipeline), monthly close process and timeline, annual accounts timeline, capex appraisal process and authority limits, expenditure approval process and authorisation limits and any other key controls in place.
1️⃣ Current processes
Form an assessment based on our experience
Finance Team
X, CEO (overall financial responsibility) X, Bookkeeper & Operations (financial processing) Monthly close process and timeline
Month-close doesn't close and some invoices come in late - e.g. Dec management accounts have Nov (and sometime Oct) changes. Management packs are produced and presented by X alongside other KPIs. Taken by X to board.
Annual Accounts Timeline
Two months after year-end. 4 weeks to run through X and X, debtors/ creditors, look into the P&L (accrue/ provide).
R&D work (undertaken by an outsourced provider by X) then done: 2-4 weeks. Meanwhile accounts are presented in draft by X to the Board.
Assessment of Current processes
Current processes are broadly in line with our expectations for a company of this size. However, there are weaknesses in the following processes
delays occur in finalising supplier invoices due to (1) delays in suppliers producing and sending these through (2) queries and amendments required when received by X. This has a knock on effect for cash-flow as cash is tied up in debtors/ creditors.
delays in finalising supplier invoices has a knock on effect for billing of clients and closing month-end. management accounts are often late and numbers can change 6-8weeks after the end of the month.
invoices received are checked manually to the X system, which is a cause of delay and potential error.
2️⃣ Future processes
Form an assessment based on our experience
Staff
Forecast staff count is to double meet the revenue growth targets. This includes, the build of a large sales and marketing team to bring on clients (up to 124 heads). In addition development team is roughly doubled from 120 to support the product development. Non-UK heads are budgeted in each territory as they go live.
Forecast of staffing are in line with the general areas that we would expect to see for this type of business with a key focus on sales & marketing teams, alongside developers.