Part-time Cfo Services | How To Avoid Making Financial Mistakes?
if entrepreneurs do not have the most current financial information in their business, they run the risk of making the wrong financial decisions says part-time CFO services. Business owners are often far too busy to accomplish all of the tasks that they need to get done in a day, and as a result leave the accounting tasks to last. As a result, they don’t happen, or don’t happen on a regular enough basis to ensure that business owners have accurate and up-to-date financial information in their business. If business owners make bad decisions based on incorrect information, the decisions that they make could at the least seriously impacts their cash flow, and at most cause them to run out of money in their business which could cause them to fail. 50% of all businesses go out of business within five years, and 29% say that running out of money was the reason their business closed. By helping business owners keep more current financial information, can help them make better financial decisions that can help them stay in business longer.
One way that business owners can accomplish this is by creating a schedule for their accounting department. Many business owners often employee the a blocked schedule for their own activities, and see that once it is in the schedule, with a little bit of discipline, anything that is scheduled actually gets done says part-time CFO services. Taking the same thoughts with schedules, and duplicating them in the accounting department, business owners can be certain that everything that needs to get done in accounting will get done once it’s in the schedule. A business owner should be looking not only at every single task that needs to happen, but how often they need to happen and if there is ever any opportunities to group tasks together in order to save time.
An example of how the business owner can save a through scheduling, is by running payables at the same time that they run payroll. How this works says part-time CFO services is because a business owners already having to run a bank reconciliation in order to verify that they have enough money to pay their employees, so they should do only one bank reconciliation and run the payables too. Once they do the bank reconciliation and verify that they have enough money in their bank account to pay their employees, they can ensure that that gets done, and see if there is any money left in order to pay their bills.
Once they have created their payments, the then have time left in their schedule to review the those payments before they come out of the business owner’s account. They should be searching for errors, duplicate payments, missed payments, and making sure that all the correct documentation is included. For payroll, a business owner should ensure that the right source deductions are taken off the employees checks says part-time CFO services.
Business owners don’t intend to have inaccurate or out of date financial information in their business says part-time CFO services, but that is a by product of not being able to have enough time in order to accomplish all of the accounting tasks that need to happen in a business. As Gary Keller, the author of the one being says, if you are what you repeatedly do, then achievement isn’t an action you take but habit you forge into your life. Business owners should ensure that they have enough time in their business to get all of their accounting activities done so that they have the most current and up-to-date information.
Having a schedule can help a business owner afford a more sophisticated CFO. The reason for that, is that instead of having that accounting person run checks every time a bill comes in, and having the business owner realize that they don’t need an accountant at their disposal eight hours a day, instead of paying one person to sit in the business and work on finances eight hours a day, a business owner can save that money, and then hire a higher level financial person such as part-time CFO services. This higher level CFO can continue to help the business owner create efficiencies, and ensure that their financial information is accurate and up-to-date.
The matter how big or small the activity is that needs to get accomplished, business owners need to ensure that there is a in the schedule for that simply because things that are scheduled get done. One thing that they need to ensure gets done in their business, is not only a review of all of the payables and payroll that are happening in their business, but part-time CFO services says that monthly statement review is also very important. Rather than reviewing for errors, which is what the payable review is, but this monthly statement review should be a strategic review looking for planning opportunities, increasing efficiencies or eliminating inefficiencies. Do the reports make sense? These reviews can help a business owner continue to stay efficient in their business, giving them more time to accomplish their tasks, and ensuring that the accounting department is staying current on the activities they need in order to give the business owner accurate and current financial information.
Another extremely important task that needs to be scheduled into the accounting department is the monthly meeting with their CFO. It is crucial that this meeting happens every single month says part-time CFO services. The reason is because it is vital to have a regular conversation with the person that is working on a businesses finance. They may have questions or need additional information. they can ensure that if there are any errors, they are caught in the moment rather than having to wait until year end in order to catch those errors which then take a lot more time to find in a lot more time to fix.