Posted: 18 April 2023 ![Implementing 1 inch wide/1 mile deep knowledge](https://www.essbiztools.com/images/zoo/blogs/bas-updates/bas190423.jpg) # Implementing 1 inch wide/1 mile deep knowledge #### Business Advisory Services Update There is much more to businesses than just preparing annual accounts and income tax returns. Suppose your accounting firm has decided to diversify services to include CFO services. In that case, you will need to ensure that your accounting team has been appropriately trained in the additional knowledge and skills that are required to deliver a virtual CFO service. It all starts with having more than a superficial understanding of how your client’s business operates. Where does it start? Is it the purchase of raw materials from a supplier in Australia or overseas, or is it the preparation of systems processes for a professional services firm to deliver services? Whatever it is, you need to start at the beginning. Preferably, visit the start of the **business transaction** and gain an understanding of who is involved, what services do they render, what is the internal control, to ensure that your client is receiving value for what is being paid. You can then move on to exploring the next stage, which could be **manufacturing**. With a manufacturing process, the next key question will be **energy requirements**. Where is the energy for the business being sourced? What are the controls to ensure that the energy supplies have been received, that the cost is reasonable and who authorises payment? The **labour team** comes next. Who hires the team members? Who sets their pay rates? Who is responsible for on-boarding and training of the new team member? Who is responsible for the preparation of the specifications for the **products** being produced? Who monitors daily production to ensure that the units produced are costing what the estimated cost was? The next big area to consider is **stock control**. Who records the completed stock into the company’s inventory system? **Who sells the products**? What price do they sell at or is the salesperson able to sell at the best price that they believe they can achieve? Are **KPIs** prepared for each process step, to enable budget comparisons? Accountants need to have an understanding of all aspects of the client’s business, in order to offer this type of service. ![bas190423 2](https://www.essbiztools.com/images/zoo/blogs/bas-updates/bas190423-2.jpg)We will discuss this further in our upcoming webinar – **Implementing 1 Inch Wide / 1 Mile Deep Knowledge** – on Thursday 20 April 2023 at 12pm AEST. **[Click here](https://essbiztools-au.zoom.us/webinar/register/WN_qwO9CUj3Tb67qiVLY66wbQ)** to register to attend, free of charge. CPD point eligibility for CPA Australia members (must attend the duration of the webinar). #### ESS BIZTOOLS Blogs ### Recent Posts... 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