Growing a business is never straightforward. Leaders often find themselves stretched thin between retaining staff, acquiring customers, securing funding, driving innovation, and balancing the books. Growth isn’t just about increasing sales; it’s about building the right foundations to scale successfully. One of the most overlooked foundations is financial management.
Many businesses assume that if the numbers add up, the system must be working. But as companies expand, the accounting methods that once sufficed can become liabilities. Recognising when your finance function has outgrown its usefulness is crucial to maintaining profitability and avoiding costly surprises.
At Insight Associates, we’ve spent over 30 years helping SMEs move from “making do” to building robust financial structures. When a company is ready to grow up, the right support makes all the difference.
The warning signs
Financial weaknesses rarely appear overnight; they creep in gradually as businesses expand. Here are the most common red flags to watch out for:
Process inefficiencies
- Bills and invoices take too long to process
- Routine tasks feel unnecessarily complicated
- Systems involve multiple steps that don’t add value.
Operational red flags
- Errors appear in financial records
- A gut feeling that accounts “don’t feel right”
- Piles of paper cluttering the office
- Records still managed manually rather than digitally.
Structural vulnerabilities
- Only one or two people control financial responsibilities
- Processes haven’t been updated in years
- Ways of working depend on individuals rather than best practice
- Exposure to fraud or disruption if key staff are absent.
Financial chaos indicators
- Surprise tax bills or financial shocks
- Constantly firefighting urgent money problems
- No forward visibility of cash flow beyond a couple of months
- Lack of regular management accounts to guide decisions.
Why this matters
These issues might sound familiar, and they may even feel manageable in the short term. But their impact on performance is real. Slow processes delay payments and strain supplier relationships.
Inaccurate records distort cash flow, leaving you unable to plan ahead. Without reliable management accounts, growth decisions become guesswork rather than informed strategy.
Money is the heartbeat of your business. If financial systems aren’t working, every other aspect of operations suffers.
Taking action
Identifying the problem is the first step towards fixing it. Business owners should carry out a simple financial health check:
- Review your current processes against the warning signs above
- Score each area from 1–5
- Highlight your three biggest concerns.
If any area scores below 3, it’s time to treat it as a priority. For some companies, that may mean adopting new technology or refining internal processes. For others, it might involve seeking external expertise to establish a stronger financial infrastructure.
At Insight Associates, we help businesses ready to take this next step. Often, that means overhauling financial systems and adopting tools like iplicit, which provide the reporting and functionality needed to grow with confidence.
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Author details
Garry Mumford is a founding partner and Managing Director of Insight Associates and a Fellow of the ACCA. With over 30 years’ experience as a finance director, he specialises in strategic planning, change management and financial turnarounds.
