As the brightest minds in global tech convene for Cambridge Tech Week, we’re really looking forward to discussing one of their biggest operational challenges: managing finances efficiently while scaling fast.
Our Virtual Finance Office (VFO) team has extensive experience working with start-ups and scale-ups in the technology space, and we often see the same pain points. These companies have very little time to recruit financial talent and quickly realise one person can’t possibly have the expertise to handle everything.
Companies a few years into operating may have outgrown having just one person and need access to specialist advice about tax, R&D, and services that cover processing, reporting and forecasting. That’s where a VFO, at exactly the right service level, can be hugely beneficial. It’s a progressive solution that fits the entrepreneurial way of working – often on the go and on mobile.
Leveraging cutting-edge technology
Our outsourced accounts solution includes bookkeeping, invoice payments, management information, cash flow forecasting, HMRC compliance, VAT returns and reports, and ensuring clients have the latest data to make informed decisions. The service scales and evolves as the business grows.
We’re embracing new technology and use the latest accounting technology to create a streamlined VFO for clients. Working securely and cost-effectively across Xero, Dext, and other systems, everything is digital with seamless sign-off processes.
AI is integrated into a lot of the tools we use. Note-taking applications capture data that flows into our CRM system, and we think carefully about the best way to use this information for the clients’ benefit.
What’s crucial to understand is that while technology handles manual tasks and heavy lifting brilliantly, our team is still needed to oversee processes and share expertise. In the future, we may be supervising an AI agent, but feedback from our clients tells us that human connection will always be at the heart of a great VFO service.
Adding value through insights
When we set up a fully outsourced VFO, we analyse the data to identify where the most friction in the process lies and solve those issues swiftly. There are often quick wins that create significant value. Every client is different – some prefer a hands-off approach, while others want to understand the whole process. The real benefits come from discussing the output, since management information and understanding cash flow is a two-way collaboration. We generate insights and make tailored, proactive and reliable suggestions for improvements.
It’s difficult to predict exactly how we’ll be using AI in a year’s time, or even beyond that, because it’s evolving so rapidly, but PEM is embracing it where it adds value now. At some point in the future, AI in relation to accounting may become self-checking, but we’re not there yet. The key is knowing what you’re going to use it for – certainly, this new functionality should be embraced, not feared.
Client engagement will always be a priority and help us to embody our core firm values of authenticity, clarity and connection. We still need to deliver the human element through a single point of contact – and that’s exactly what makes the difference in overcoming the challenges of running a rapidly growing business.
If you’d like to discuss the potential of a VFO and a joined-up, resilient service with access to our 70-strong specialist tax team, and would like to meet up at Cambridge Tech Week, please get in touch with me.
Please note that this content is not intended to give specific technical advice. It is designed to highlight some of the key issues rather than provide an exhaustive explanation of the topics. Professional advice should always be sought before action is either taken or refrained from as a result of information contained herein.
