Business owners are often trying to figure out how to get more accomplished in the 168 hours they have in a week says part-time CFO services. While creating efficient schedules for themselves can help, if they are not doing the same thing for their accounting department, they can end up with a business that does not have accurate or up-to-date financial information, because certain accounting tasks are not getting accomplished. When business owners don’t have current financial information in their business, the financial decisions that they make can often be bad decisions. Not because they can’t make a good decision, but when they are making financial decisions based on outdated information, they Can make errors. These financial errors could cause serious cash flow strain on their business, or even cause business owner to run out of money in their business which forces them to close. Since 50% of all entrepreneurs are out of business within five years, and 29% of those entrepreneurs went on to say that the reason why their business closed was because they ran out of money.
Simply by creating a a blocked schedule for their accounting department, business owners can ensure that every single task that needs to get done, no matter how big or small it is best accomplished says part-time CFO services. Also, it can ensure that there are efficiencies in the system to avoid running payables multiple times a week that can eat up a lot of time, and that like activities are grouped together in order to maximize time. Business owners need to understand that the need to be disciplined in order for this to work, which Gary Keller, the author of the one thing agrees with, if you are what you repeatedly do, then achievement is an action you take but a habit you forge into your life.
An example of an efficiency that business owners can use in their business is to run their payables along with their payroll. The reason why this is so efficient says part-time CFO services, is because since the business owner is going to be dispersing cash, be need to do a bank reconciliation. Since they’re going to run the payroll at the same time as payables, they will only have to do when bank reconciliation. This can create significant time savings, and instead of doing daily or weekly payables, they move them to coincide with payroll, and there only needing to create payments twice every month.
By creating these payments twice a month, and eliminating the need to run payables every single day, a business owner can create a lot of additional spare time in their accounting schedule. But they can do with some of that extra time says part-time CFO services, is create payment reviews. These payment reviews can be extremely vital to ensure there are no errors before a business owner runs those payments. Making sure there is no double payments or missing payments can go a long way in ensuring financial records are kept up-to-date.
If entrepreneurs don’t have the most up-to-date financial information in their business, it can lead to them being unable to make great financial decisions, that can leave their business struggling says part-time CFO services. Since 50% of all entrepreneurs go out of business in five years, and 29% of them say that the reason they’d had to go out of business was because they ran out of money. Business owners don’t usually make bad financial decisions because they don’t know how to make good decisions, but they often make bad financial decisions because they have inaccurate or out of date financial information in their business. By creating a schedule and their accounting department, business owners can ensure that all of the accounting tasks that need to get done regardless of level of importance have a which to do them. Many business owners are familiar about how a blocking can be extremely good at ensuring that business owners accomplish all of the tasks that need to get done. All it takes is some discipline.
Entrepreneurs will find that once they create a schedule, they will have a lot more time in their accounting department. They can also look for ways to create efficiencies that can save even more time. By saving time, business owners will no longer required having an accountant in their business full-time which can help them save money, as well as be able to afford part-time CFO services to give them a higher level of financial service. This can continue to help them ensure that they have accurate and up-to-date financial information as well as have someone that can make recommendations on their business which can also help them succeed.
Business owners need to ensure that no matter how big or small the financial task is, it needs to happen. Even if they need to happen only once a year says part-time CFO services. Reviewing their investment portfolio, reviewing amortizations, accounting accruals as well as payroll accruals are all examples of things that don’t need to happen every single month, they can happen once a year for most small businesses. Once a business owner is no longer spending a lot of time on those activities every single month and move them to be looked at once a year, the open up even more efficiencies in their business while ensuring that those tasks don’t get forgotten. Part-time CFO services recommends that entrepreneurs do enough work in their business to ensure they can make good financial decisions but don’t waste any time either.
It’s also extremely important for entrepreneurs to have a monthly meeting with their CFO. It needs to be face to face in order to facilitate back and forth conversation so that questions can get answered, and errors can be fixed. It’s much easier to have a face-to-face discussion about it, and business owners should know that there is very few things more important in their business then finances, so they need to make an effort to have a regular discussion about it.