If entrepreneurs do not have a set schedule and their accounting department, financial tasks often don’t get done consistently, leaving the business owner to have an accurate or out of date financial information in their business says part-time CFO services. This can negatively impact the business owner, because they will not be able to make great financial decisions in their business. This can negatively impact their business, and can even cause them to be forced to close their business due to lack of money.
Learning how to schedule the accounting department can be very simple says part-time CFO services, business owners need to remember though that they need to be very disciplined in order for this scheduling to work. Business owners should ensure that they make a list of all of the tasks that need to happen in their business, in order to have an accurate schedule. Everything that is scheduled, gets done. Business owners need to ensure that they are not only creating the schedule of when everything happens, but that everything gets done smartly. A business owner should ensure that they are creating efficiencies wherever possible, by grouping similar activities together at the same time.
An example of how creating a schedule can help the business owner is by looking at their payroll says part-time CFO services. A business owner can make it so that there is a longer time line between payroll cut off and payday. Part-time CFO services recommends that business owners have a minimum of one week in between the two for a variety of reasons. The first reason is that if a business owner doesn’t have enough money in their bank in order to pay payroll, having a longer timeline allows the business owner time to make collection calls, or generate more revenue in order to cover that expense. The business owner has a short period between cut off and payday, they may not have enough time to bring that money in.
Entrepreneurs should ensure that no matter how infrequently the task occurs, it still needs to be put into the schedule. There are examples of some accounting activities that only need to happen once a year in addition to doing the financial year end says part-time CFO services. These things are amortizations, accounting accruals, payroll accruals and reviewing the investment portfolio. By working on these only once a year, a business owner can save time in their schedule for other activities.
An example of an accounting activity that is absolutely should be scheduled and and never missed says part-time CFO services, is the monthly face-to-face meeting with their CFO. It’s important that this happens face-to-face, because if any discussions need to happen then being able to have a conversation person is much easier and faster been through email. There is nothing more important to business than ensuring the financial information is current and accurate, therefore it’s extremely important that a business owner makes the time and then their schedule for this meeting.
When business owners have up-to-date and accurate accounting information in their business says part-time CFO services, they can be confident about financial decisions they need to make in their business, whether they need to hire people, they people off or buy equipment for example. Without current financial information, business owners can never be certain if the decision they’re making is correct. The other will make the wrong decision, or their indecision can stall out their business.
One way that entrepreneurs can ensure that their financial information stays up-to-date, is to create a schedule for the accounting department. Schedules can be very powerful tools, ensuring that if a schedule is created and adhere to, they can ensure that all of the important tasks can get done. Once a business owner schedules and their accounting department, they often see that they no longer need a full-time person to work in their financing department, because they have created a schedule and created efficiencies. Instead of hiring a full-time person to work in their accounting department, a business owner can save them money, and then be able to hire a higher level financial person such as part-time CFO services.
An example of how business owners can utilize the schedule to create efficiencies is by grouping together the payroll and the payables says part-time CFO services. This saves time, because a business owner only needs to do one bank reconciliation for both activities, and a business owner is only going to be doing the payables every time there’s payroll, which significantly cuts down the amount of business checks the business owner is writing. This changes the dynamic in the business from payables coming out of their bank every day, to twice a month.
Another way that running payables and payroll together can help business owners, is by ensuring that a business owner has enough money in their bank account in order to pay their staff. Will do the bank reconciliation, and see that they have enough money to pay their staff and the amount that’s left over, they can pay their vendors with says part-time CFO services. If a business owner sends out multiple payments to their vendors several times a day, they may be left wondering if they have enough money in their bank to pay their staff. However scheduling them together ensures that the staff always gets paid first.
When entrepreneurs only have the two payables coming out of their bank account twice a month, it will help business owners review their finances for errors. Any payables that come out of their bank in between these periods, a business owner will be able to see very easily, and then verify if it’s correct. This can save a lot of time especially at year end, when an accountant needs to verify if various payments are accurate or not. Part-time CFO services says that not only can creating efficiencies help a business owner throughout the year, it can also help at the end of the year as well.