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Implementing an effective governance structure into a business will facilitate better decision making, risk management and accountability, Kyelie Baxter has said.
Governance frameworks key to business triumph, accountant says
20 March 2025
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8 minute read
Kyelie Baxter, managing director of IQ Accountants, says business success and its everyday operations, systems and processes rely on the functionality and sustainability of its governance structure.
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Talking to Accountants Daily on a recent Under the Hood episode, Baxter recommended governance, specifically a governance calendar, should be top priority for all SME owners.
“A governance calendar needs to be a living and breathing document that can take any form, but is crucially important for reminding you to keep on top of important things, like when authorities were last delegated, who holds responsibility for certain tasks and when certain elements were last reviewed,” she said.
“The idea of putting these governance structures into place is to help business owners manage their risk and help them be strategic. One of the main reasons we want to be strategic is for growth.”
When asked if the point and benefit of a governance structure was for management or employees, Baxter said governance was for the benefit of the management and leadership team of a business.
This included the delegation of authorities and frequent check-ins, which worked well for teams of at least 10 employees or more, she added.
The delegation of authorities when establishing or reviewing governance was key to protecting the business’ budget and its strategic goals which should always be “the bottom line” for any, and every business.
“I think it’s the leadership team that should use a governance structure to use that to delegate down to the right people, for the right job,” she said.
“I think introducing the delegation of authorities means that efficiencies are improved as well. If you have a really great governance structure, or calendar, this will help with things like staff burnout because the responsibility is not on a person, the responsibility is on a system. It’s our job to make sure that system’s working properly.”
Risk management was also highlighted as vital in running a successful and sustainable business, as no business owner could perceive what risks or accidents could jeopardise them.
Potential manageable risks included cyber security, natural disasters, financial risks, as well as staff, personal and recruitment risks.
“I often see that risk management is something that people do on a reactive basis, but we need to be more proactive in that space, because you never know when something like a cyber attack is going to hit,” Baxter said.
“No one wants to do it, but a risk matrix needs to be created because there always needs to be a plan ready to go if something happens. A risk matrix also ensures all employees are across procedure and know exactly what to do if something were to happen.”
Baxter concluded by saying that a governance framework should be able to be changed and amended at any time, yet it was essential to create one that reflected the core values of a business, and the needs of employees and business owners.
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