Part-time Cfo Services | Schedule Accounting Departments For Efficiencies?
One of the setbacks that can happen very easily in small businesses is if business owners don’t have current financial information, then they are unable to make well informed financial decisions in their business says part-time CFO services. This can create not only a cash flow issue, but that unnecessary financial strain on the business, can force a business to shut down due to not having money. If business owners want to avoid running into cash flow problems in their business, one of the ways that they can help avoid this, is by creating scheduling in their accounting department.
Many business owners aren’t sure how creating a schedule for their financial department can help them avoid cash flow issues, but by ensuring that every task that needs to happen their accounting department has a time devoted to that, business owners can ensure that not only is their accounting information up to date, it is accurate as well. Part-time CFO services says that one of the financial tasks that they should schedule in from the start, is reviews. If they are creating reviews to go over there cash disbursements before they are dispersed and going over there payroll before the payroll comes out of their bank, entrepreneurs can avoid double payments, missed payments and verify that they have enough money in their bank account to be able to pay everything they intend.
One way to create efficiencies, is to ensure that business owners are scheduling enough time between payroll cutoff and payday. If entrepreneurs don’t have enough time, if a business owner happens to not have enough money in their bank account in order to clear payroll, a short timeline means that they are quite powerless to change that. Part-time CFO services recommends that entrepreneurs have a minimum of one week between cutoff and payroll, in order to ensure that if they have any concerns with having enough money in their bank to clear payroll, it gives a business owner enough time to generate revenue, or making collection calls in order to address the situation.
Another way that entrepreneurs can schedule efficiencies into their accounting department, is by ensuring that they payables at the same time that they ran payroll. This way says part-time CFO services, entrepreneurs can ensure that they have enough money in their bank account to run payroll, and then the money that is left over, he can be towards their bill payments. Reading the boat the same time can save significant time, instead of having to run many batches of payables throughout the week, they’re doing it once every two weeks. And that additional time will allow them to review their payments and their payroll well before it comes out of their bank.
Scheduling their accounting department can help business owners be organized, and save time in their schedule, that additional a business owner can use to review their payments as well as their statements, and ensure that everything that needs to get done does get done and on time.
Running out of cash is a significant risk for many small businesses says part-time CFO services. 50% of all entrepreneurs will close their business before being open for five years, and 29% of those entrepreneurs that close the doors to their businesses say that running out of cash was the reason why.
Since running out of money is such a significant problem that many business owners face, entrepreneurs can work to combat this issue a number of ways. One of those ways is by creating a schedule for their financial department. The same way that time blocking works for their own schedule, the same thing can work in their financial department as well. Business owners should be looking at where to schedule in all of the important tasks that need to get done, but also in how to create efficiencies that schedule so similar tasks are be done at the same time in order to work as efficiently as possible says part-time CFO services.
One of the first things that entrepreneurs will notice when they create an efficient schedule, is that they no longer need to have a person working full-time on their finances. By saving money on having to pay a full-time person because of the efficiencies, a business owner can they get a higher level financial person working part time for them such as part-time CFO services. Not only will they have a higher level person that can help guide their financial decisions, they will also be saving money as well as getting everything accomplish that they need.
When ways that business owners can create efficiencies, is by grouping together tasks that need to get done similarly. Example of that says part-time CFO services is running payables at the same time is running payroll. A business owner will know that people will be done every two weeks no matter what, so they can use that to schedule in their payables. By eliminating the need to rent payables on a daily basis, business owners can be more informed how much money they have in their bank account, and save significant amounts of time by not having to run several bank reconciliations in several different checks.
By grouping together those to different financial tasks, business owners cannot only save significant amounts of time, but also use that additional time in order to review those payments after they’ve been scheduled, and before they come out of their bank account. This way they can ensure the numbers make sense and compare the two monthly balance sheets and monthly income statements to ensure that payments are reasonable before submitting the report.
By creating these accounting schedules, business owners can save time, ensure all tasks get accomplished, and reduce errors. This can go a long way to ensuring that business owners have up-to-date and accurate financial information in their business at all times should the need arise to have to make a very quick financial decision.