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Part-time Cfo Services | Avoiding Accounting Errors Through Scheduling?
Financial errors can have a huge impact on entrepreneurs says part-time CFO services, because errors can cause a business owner to not know what’s going on in their business financially, and can greatly impact their business. In order to make great financial decisions, business owners should have a clear understanding of what’s going on in their business. Inaccurate or out of date financial information due to errors can significantly impact the business, causing them cash flow issues, or even forcing them to run out of money in their business.
Creating a schedule in the accounting department can reduce errors as well as help keep up-to-date information says part-time CFO services. Entrepreneurs should ensure that when there creating their schedule, not only should all of the financial tasks be scheduled then, regardless of how often or seldom they need to happen. And also a business owner schedules in time to review their finances on a regular basis to look for errors.
Rather than writing a check every single time a bill comes in, business owners can create a schedule where they run their checks once a month or twice a month. When a business owner goes to pay their bills, they can do a bank reconciliation ensure that they have enough money in their bank account in order to pay those bills. They can create all of the payments, and then spend time reviewing those reports to ensure that the numbers are accurate and make sense before they’re posted. Part-time CFO services says that it’s very important for entrepreneurs to do this reasonability test before submitting the report and having the money come out of their bank account.
Business owners can also schedule payroll in order to allow them a to check for errors. An important way they can do that says part-time CFO services, is by ensuring that there is at least a week or more between payroll, and payday. The reason for this, is because if there is a too short timeline, a business owner doesn’t have enough time to create payroll and then review it for errors. Also, if there happens to be a staff holiday that falls in that time period, but short timeline becomes even shorter. If entrepreneurs have a minimum of one week between when cutoff is and when payday happens, they can ensure that not only they are reviewing their payroll for errors, but if a business owner happens not have enough money in their bank account in order to run payroll, that longer timeline will allow them the opportunity to collect the money.
One of the most important ways that business owners can avoid errors in their business by scheduling their accounting department, is by ensuring that they have their monthly meeting with their CFO scheduled. Part-time CFO services says that this is extremely important that the meeting was monthly and that the meeting is face-to-face. It will be much quicker to talk face-to-face if the CFO with a business owner have any questions.
Making great financial decisions and business doesn’t happen by accident says part-time CFO services. Business owners who keep their accounting information up-to-date, can be confident that the financial decisions that they are making in their business make sense, and won’t cause any issues. One way that business owners can ensure that they have a in order to accomplish all of the tasks, is to create a schedule.
Many entrepreneurs are already familiar with a blocking in their own scheduling, and that they recognize that business owners who schedule their day, accomplish everything that is scheduled to. Part-time CFO services says the exact same is true for their accounting department as well. To ensure every task that needs to get done has a time, business owners should not only create a schedule, but they should also group together different financial activities that make sense to happen at the same time. Not only will they ensure that all tasks get done, but they can ensure that all tasks get done efficiently.
An example of grouping together financial tasks for efficiencies, is when a business owner decides to run payroll at the same time as running their payables says part-time CFO services. It makes a lot of sense, since a business owner will have to do a bank reconciliation to do either payroll or payables, if the group them together, is just one bank reconciliation at a time. Also, by running payables at the same time as payroll, a business owner eliminates having to write multiple checks multiple times a day, which also saves time.
Part-time CFO services says that once a business owner is in the habit of scheduling their payables at the same time as payroll, it can ensure that they always have enough money in the bank account in order to pay their staff. The reason for this, is since they only have payables coming out of the account twice a month, as long as a business owner has had money coming in, it will be able to make that payment. All the business owner has to do, is due a bank reconciliation to ensure that there is enough money in the bank account to pay their staff, and then if there is any money left over, the business owner can then figure out which bill payments that can include to make.
The additional time that they save by grouping together these activities, business owners can review their payments to ensure that the numbers make sense. Part-time CFO services says that they can compare their monthly income statement and the monthly balance sheet to make sure that the payments look reasonable before they submit them. It also allows a business owner time to do a monthly statement review. Instead of looking for errors, business owners can look at all of their statements and see if there are any inefficiencies that can be fixed, or if there are any planning opportunities that they are missing. This review should be strategic in nature.