Insight Associates provide outsourced accounting and Finance Director services to ambitious and growing businesses. We work as your only resource or with existing staff to give you complete financial support including monthly management accounts, high level financial advice, robust controls and financial systems, funding and business planning, payroll & compliance, VAT returns and statutory compliance.

Successful business leaders have all the information they need to make good decisions…Do You?

Tuesday, April 22, 2014

Running out of Water

With the average human adult made up of approximately 60% water it’s important to stay hydrated – and even more so when taking exercise - which is why it seems incredulous that the Sheffield half marathon event was cancelled recently due to a lack of drinking water along the route!

So how can such a critical element be overlooked?

It’s claimed the organisers placed an order that wasn’t fulfilled by the water company because they didn’t receive payment in advance (as per their contract terms).

The blame game at this stage doesn’t solve anything – but here’s some advice to prevent critical errors of this nature damaging your business:

  • Yes we know you’ve heard it before but…

    never ASSUME… it makes an ASS out of U and ME!

    Make a point of reading new contracts and fully understand the terms of them – it’s OK to ask questions if you don’t understand.
    If you can’t spare the time then delegate this to a competent employee who can ‘flag’ any unusual terms as and when they arise.
  • Good ‘Purchase Order’ controls are essential as this is the point at which your businesses cash is being committed. There must be a clear ‘authorisation’ process.
  • A diligent Finance Department/Finance Director will implement these types of procedures and controls and ensure the cash is available to make the purchase when required and that all supporting paperwork is processed in a timely manner.
As always, Insight Associates 'Outsourced Finance Department' is only a phone call away if you need someone to take responsibility for this element of your business.

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