The work of finance managers in family businesses is often hampered by business owners who wish to keep family affairs confidential and are reluctant to share financial information essential for business growth, a study has found.
The work of finance managers in family businesses is often hampered by business owners who wish to keep family affairs confidential and are reluctant to share financial information essential for business growth, a study has found.
The work of finance managers in family businesses is often hampered by business owners who wish to keep family affairs confidential and are reluctant to share financial information essential for business growth, a study has found.
CPA Australia's business policy adviser Judy Hartcher said the line between family finances and business finances was often blurred in these businesses, making it difficult for finance managers to perform effectively.
"Family businesses that employ professional finance managers may not be getting the best value from them if they do not provide all relevant financial information," she said.
The findings are from a repoprt entitled Finance Managers in Family-Owned SMEs, conducted for CPA Australia by Dr Bruce Gurd, Associate Professor of Management in the International Graduate School of Business at the University of South Australia, and Dr Jill Thomas, Senior Lecturer in Management in the Adelaide Graduate School of Business at the University of Adelaide.
According to the research, the most significant factors inhibiting the finance managers' performance are 'lack of communication' and 'lack of business planning.'
"These factors are linked to finance managers in family businesses not being kept in the loop with available financial information, and not being involved inthe business' decision making and strategic planning," Ms Hartcher said.
"Some finance managers felt they were under-utilised. The findings showed that finance managers are mainly involved in routine accounting and administration functions such as accounts receivable and accounts payable, with almost two thirds being responsible for these tasks.
"They also played an important role in facilitating access to capital. In more than half the cases, finance managers liaised with banks and over a third were responsible for negotiating loans. However, many expressed concern that they did not have the opportunity to be involved in strategic planning where they felt their expertise could be useful," she said.
However the report also found most finance managers surveyed said they enjoyed working for family businesses, with the job providing them with a sense of fulfilment and job satisfaction stemming from a breadth of experience and close relationship with the family.