Navigating Financial Leadership: Insights from Enspira Financial CEO Sook Smith
Sook Smith, CEO, Enspira Financial.
It's often said that outstanding leadership starts with you but is not about you. Enspira Financial's newly appointed CEO, Sook Smith, embodies that mantra with her fresh and authentic approach to running a progressive accounting firm. In the first 12 months of her new appointment, Sook's priorities are ensuring the right company culture and connecting with her team.
Sook explains, 'I have started on a Virtual Connect Tour. Where possible, I am meeting up with the team in person, and where not possible, I am meeting them via virtual meetings to connect with them and listen to what they have to say. My priority is to understand the business's needs, and only then will I work out what areas we need to prioritise’.
Enspira Financial is a relationship-based advisory accounting firm with big aspirations for its business and its clients. With a proactive approach, it genuinely wants to see its clients succeed.
Sook shares her take on business growth, leadership, and financial management.
What are the fundamental financial metrics you should be aware of as a CEO that are often overlooked?
Revenue Growth and working capital ratio. Sufficient working capital provides a safety net to help the business through a slow period or allows you to be decisive if an opportunity presents itself. If part of your Business Strategy is to grow, you will need funds to do this; with working capital available, you can move swiftly to seize an opportunity.
How often would you recommend leaders review their financial position?
Reviewing your financial position regularly is very important. You should do it at least once a month. Leaders need to know the numbers. Don't wait for your accountant to tell you the numbers; you should come to your accountant with questions and items to discuss. Regular reviews will help ensure you are on track to reach your goals. These reviews also allow you to pivot or make quick decisions when required.
Who within the company should be involved with financial analysis?
Anyone who can influence your numbers should be involved. Think both small and big here. At one end of the spectrum, you want to be across the smallest budgets, such as printing and stationery; simultaneously, Sales team targets are critical…right through to the CFO and what KPIs they are tracking.
What are some of the opportunities when it comes to proactive financial analysis?
We assist clients with proactive financial analysis by providing timely reports, mainly through our Dashboard services. Each Dashboard is customised to the business needs and offers general financial KPIs and information. Having such data continuously available enables timely decision-making. It also allows leaders to identify trends and develop strategies for the future.
An example of a Dashboard is using information from Shopify to plot data on the customer profile regarding product lines and combinations of products based on age and location. This data can then be used for marketing purposes.
The Australian M&A Outlook 2024 Preview reported after a period of slowdown in the second half of 2023, we are seeing early signs of an upswing in M&A in Australia as companies look to accelerate transformation and value creation. How would a client engage Enspira Financial for a potential acquisition?
Enspira assists with due diligence on Financials, Tax compliance, Valuation, Restructuring, and Tax Implications of M&A, as well as working through the M&A steps, Financials, and Tax.
And what are you looking for when conducting Financial due diligence?
Financial due diligence aims to determine whether a company's financial information is true and accurate. This helps the buy-side in M&A transactions to get a better understanding of the company's core performance metrics. The main factors are Profitability, Performance, Return on Investment, and Contingent Liabilities.
We also consider Tax Compliance, Cash Flow, Balance Sheet Strength, Financial Ratios, and Risks.
William Buck states that SMEs are driving M&A activity, even as deal volume and value decline.
To ensure effective M&A decision-making, what questions should leaders ask their accountants about an M&A?
What are the potential benefits and risks they can see from this M&A?
What are the costs associated with the M&A?
What is the best way to structure the M&A?
How does Enspira Financial incorporate giving and engagement with the community?
Through The Enspira Foundation, we donate some of our profit to charity. Together with our clients, we are proud to have raised over $1.6 million to date. The Foundation also donates funds to various charities in our community.
Furthermore, our Partners volunteer on various boards and committees of Charities and Not-for-profit organisations serving the community.
I am the Treasurer and Board member of LocalKind Northern Beaches. This local charity supports and provides services to vulnerable people, including the homeless and victims of Domestic Violence, in the Northern Beaches area.