complying with regulation is not the same as best practice

Everyone knows you cop a fine if you fail to meet all your compliance obligations, however there is no punishment you fail to manage your business finances properly.

It just happens that you can’t manage a business properly without global best practice financial management (budgeting, forecasting, reporting and cashflow).

The best companies all over the world run by elite leaders do not to confuse regulation with best practice. In fact, they deliberately decide to opt-in to best practice financial management because it creates shareholder value, not so they can avoid punishment.

Yet in Australia, most SME’s still associate the accounting profession with only tax and compliance services.

Maybe this is due to our convict colony beginnings, as it seems Aussies are better at being coerced than persuaded.

The paradox is that Aussie SME’s crave peace of mind, reliable profits and predictable cashflows, yet they have no visibility of where they are heading, or ability to make informed strategic decisions about the future, despite a squeaky clean compliance record.

Instead of making informed decisions about the future, they trawl over historical compliance numbers hoping for ‘the answer’ to jump off the page and land in their lap, whilst heading off into the sunset flying by the seat of their pants.

Maybe the best companies from all over the world are onto something?

David Dillon is the President of the Virtual CFO Association.

The Virtual CFO Association is an award winning elite peer network, advocating and promoting the emerging Virtual CFO sector within the accounting profession.

Collectively the association currently has almost 600 years of industry experience, with highly qualified and experienced specialists spread across more than 25 industry verticals.

If you would like any more information regarding the Association of Virtual CFO’s, please visit our website

#VirtualCFO #smes #accounting