Outsourcing your finance department

An interview with David Hancock, founder of Rhyme & Reason

Following the recent expansion of our outsourcing team with three new hires, our Managing Director, Nicky Goringe Larkin speaks to David Hancock, entrepreneur and founder of Rhyme & Reason (R&R) – a London based agency that connects brands to their customers’ purpose – on the benefits of outsourcing R&R’s finance department and working with Goringe Accountants.

Nicky: Tell me a little more about R&R and your success in building high revenue businesses?

David: I’ve always had a passion for communication and how customers engage with brands. Rhyme & Reason is my fourth business, having previously run three companies with turnovers between £3 – £10 million – ranging from a Tokyo Stock Exchange listed digital experience agency to a leading-edge mobile experience business, and a fully integrated creative agency.

I set up Rhyme & Reason because most brands are still failing to define and communicate who they are and how that matters to their consumers. Many still think that having a great quality product and customer experience is enough but it’s not. In a world with 500 million tweets, 4.3 billion Facebook messages and 500 million hours of YouTube footage sent, posted and uploaded daily, brands that prosper are those that authentically connect their products and services with their customers; communicating meaningful propositions that connect their brand to their customer’s purpose.

Nicky: Why do you outsource your finance department to Goringe Accountants and what are the benefits?

David: Particularly in the early stages of setting up a business, it’s very important to focus expenditure on your revenue generators such as new business development, and to minimise any overheads or revenue detractors that affect your profit and loss. But you can’t operate and grow a business successfully without a good finance facility.

Investing in an in-house finance team was an unnecessary overhead and risk for us, especially when we can just as easily outsource at less cost to the business. Working with Goringe Accountants, in Reading and London, means we get a fully functioning finance department with specialist teams all for the same price as hiring one part time employee. This gives us greater flexibility to use services in line with our business growth and is less financial risk to the company.

The Goringe team manage the majority of our finances from overall management of corporate accounts, VAT returns, payroll and tax returns, budgeting and planning, to bank reconciliation.

Nicky: Why did you pick Goringe Accountants?

David: We started to work with Goringe Accountants in January 2019 and I was immediately impressed with the way you, Nicky, clearly care about your client’s business and this translates right through your company. I need to be able to rely on a partner to give me the right advice and be there as part of my business, even if they’re remote. I definitely got that impression of care and attention and felt really comfortable that this was the sort of partner I wanted to work with. Goringe is great at advising us on how to get the best from our finances, setting our business on a growth trajectory.

Nicky: What would be your three top financial tips to an entrepreneur starting up his first business venture?

David: Focus your time on maximising your core skill and building your company – not on the things you can get other experts to do for you – including the administration of your accounts, which can be time consuming and takes your attention away from the business.

In line with this, consider outsourcing your finance department, especially if you need a range of financial support and services which then requires various accountants with different skill sets –building an inhouse finance team can be a costly commitment that may not be necessary to a start-up or SME.

Make sure you’re doing what you love, and never deviate from it!