FDs defend close relationship

FDs defend close relationship

Are finance directors too close to their companies to be objective about their accounts?

Despite the shock revelation that nearly one in three finance directors think they are too close to their company’s accounts to be totally objective, it does not mean that they see it as a problem.

The result of this week’s Accountancy Age/Reed Accountancy Personnel Big Question shows that 29% of respondents thinking objectivity is difficult. Some 60% believe their impartiality inscrutable but the significant minority that think otherwise will make investors all over the country nervous.

‘Yes of course finance directors are too close to their companies to be objective,’ said one. ‘Objectivity is for auditors and liquidators.’

Another said: ‘That’s the reason for audits. If FDs were totally impartial they would be unnecessary.’

One was proud of his close relationship. ‘You can never be too close especially when you are responsible for the accounting.’

Perhaps closer to the truth was the FD who said: ‘You can’t risk upsetting the people who pay your wages.’

Share

Subscribe to get your daily business insights

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata
Professional Services

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

3y

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

3y

2 Vital keys to Remaining Competitive for Professi...

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...

View resource
Turn Accounts Payable into a value-engine
Accounting Firms

Turn Accounts Payable into a value-engine

3y

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
Digital Links: A guide to MTD in 2021
Making Tax Digital

Digital Links: A guide to MTD in 2021

3y

Digital Links: A guide to MTD in 2021

The first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...

View resource