When you think about finance in a business, you might imagine bookkeeping, accounts and tax returns. Admin and bills. And yes, these areas are a part of it. But the finance function of a business actually serves a much broader purpose than just keeping HMRC happy.

The finance function is the part of your business that keeps the money flowing, keeps numbers accurate, and keeps decisions informed by high quality data.

Understanding and maximising your own finance function as a business owner isn’t just about compliance. It’s about growth, control, sustainability and peace of mind.

The three main roles of a finance function

At its core, the finance function serves three primary responsibilities.

Compliance

These are the things that your business must do, with stiff penalties and sleepless nights likely for those which don’t.  

This includes filing your company accounts to Companies House on time and accurately, submitting VAT returns, running payroll, preparing corporation tax returns, and also the personal tax returns of director shareholders. For larger businesses, this may also include a statutory audit.

Reporting

Numbers aren’t much use unless you can see and understand them properly. A good finance function provides accurate and timely reporting for both internal and external eyes. These reports include profit and loss, cashflow, balance sheets, and forecasts.  

This information is your secret weapon as a business owner. It gives you the insight you need to understand how your business is performing right now, not six months after year-end. This is vital for good decision making.

Strategy

This is where your finance function can really drive some value, both now and long term. As well as recording historical data, your finance function can also help plan the future. This means tax planning and optimised remuneration for shareholders. It also means budgeting and forecasting, helping you decide when to reinvest, when to hold back, and how to grow sustainably.

This is the advisory layer of a finance function that transforms your accountant into a strategic business partner.

So why is this all important?

Most business owners don’t start their company because they love spreadsheets – we did, but we are accountants!

You’re focused on clients, product, marketing, customer service, innovation and much more. But without a proper finance function, you’re flying blind.

• Cashflow disruption can derail growth and even put business liquidity in jeopardy.
• Missed deadlines can lead to expensive fines and interest.
• Inefficient tax structures can waste money
• Poor reporting means you don’t actually know how well you’re doing until it’s too late to take action.

In other words, without a quality finance function, you simply don’t have full control over your business.

How big should your finance function be?

A finance function can be one person or an entire team of specialists. Which route is best depends entirely upon your business needs, its complexity and your long term growth and sustainability goals.

• Small businesses and consultants often outsource their finance function entirely, getting compliance, reporting, and advice rolled into one package.

• Growing companies may have a mix of outsourced support (for accounts, tax, and bookkeeping) and in-house staff handling day-to-day finance tasks.

• Larger businesses may have full finance teams, from finance managers to CFOs, because the volume of transactions and strategic decisions is much bigger.

However, many businesses, regardless of size, are also taking advantage of outsourcing their finance function entirely. An Outsourced FD (Finance Director), for example, provides vast experience in a cost-effective and scalable manner, without the cost and commitment of a full-time Finance Director. You can learn more about Outsourced FDs here.

How a finance function drives growth

The key thing to remember about your finance function is that it isn’t just a cost, it’s a growth driver that can pay for itself many times over.

By freeing up your time, ensuring tax efficiency, and providing the insights you need to make smarter decisions, the finance function becomes an invaluable tool to help you scale with confidence and avoid costly mistakes.

Your finance function is the beating heart of your business operations. It’s what keeps you compliant, gives you visibility, and supports smarter decisions. Without it, your business risks running blind. With it, you’ve got the structure and insight to grow.

How Gravitate can help

At Gravitate, we provide complete finance function solutions for businesses across the UK. From bookkeeping and payroll to tax planning and strategic advisory, we take care of the numbers so you can focus on growth.

If you’re ready to build a finance function that actually supports your business (not just keeping the lights on) get in touch today.

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