Accountants do more than just crunch numbers—they help directors plan, spot trouble early, and protect cash. In this interview, Chris Worden speaks with Izzy Rosenberg, founder of Prospify, about the evolving role of accountants and how directors can benefit from a modern finance function.
- Accountants should help directors make informed decisions, not just report numbers.
- Financial clarity and regular management information are vital for business health.
- Directors must understand the difference between bookkeepers, accountants, and fractional finance teams.
- Red flags include clients who are overly price-focused or unwilling to invest in advice.
- Routine financial reviews and cash flow forecasting are essential.
The Modern Accountant’s Role
Izzy Rosenberg, a chartered accountant with an engineering mindset, believes accountants should be proactive partners for directors. Chris Worden highlights how the profession has shifted from technical compliance to everyday business support. Accountants now help directors plan, set goals, and make strategic decisions.
Bookkeeper vs Accountant vs Fractional Finance Team
- Bookkeeper: Handles invoices, reconciles banks, and basic record-keeping.
- Accountant: Focuses on tax compliance, statutory accounts, and company law.
- Fractional Finance Team: Acts as an in-house finance function on a part-time basis, providing ongoing advice and management information.
Why Directors Need More Than Annual Accounts
Many directors run their businesses with outdated information, relying only on annual accounts. Chris Worden and Izzy Rosenberg agree that regular management information and cash flow forecasts are crucial for making timely decisions and avoiding financial blind spots.
Red Flags and Client Fit
Both Chris and Izzy stress the importance of working with clients who value advice and are willing to invest in their business. Red flags include prospects who are only interested in price or who see accountants as a cost rather than an investment.
Building a Finance Routine
- Know your monthly turnover target to stay in business.
- Track progress throughout the month, not just at the end.
- Maintain a 13-week rolling cash flow forecast.
- Review key metrics: margins, turnover growth, and return on investment for new hires or marketing spend.
Key Takeaways
- Accountants should be partners in decision-making, not just compliance.
- Directors need up-to-date financial information to avoid running their business blind.
- Regular financial routines and honest conversations are essential for growth.
- Choose clients who value advice and are ready to invest in their future.
FAQs
- What’s the difference between a bookkeeper and an accountant?
- A bookkeeper manages day-to-day records, while an accountant handles compliance, tax, and statutory accounts.
- What is a fractional finance team?
- It’s an outsourced finance function that provides ongoing advice and management information without the cost of a full-time hire.
- Why is management information important for directors?
- It helps directors make timely decisions, spot issues early, and plan for the future.
- What are red flags when choosing clients?
- Clients who focus only on price or are unwilling to invest in advice are often not a good fit.
- How often should directors review their finances?
- Ideally, directors should review finances weekly and monthly, with regular cash flow forecasting.
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