It’s easy to become complacent and overlook key warning signs if you’re not watching business metrics meant to draw attention to the performance indicators of your organisation. Here are six (6) key points we go through with every one of our clients:
1) “Do it right the first time so you don’t have to do it again”. Tempted to take a shortcut with your financial controls? This can and will come back to bite you in the near future, such as at tax time or when you are looking for business financing options.
2) Do you mix personal and business expenses and/or assets? Accurate financial control and effective budgeting are practically impossible if it is unclear where the money originated from or if it was spent for personal or business purposes.
3) Do you re-invest earnings into your business? Why/why not? You will need to invest in your business, no matter how big or small, to see it expand. It is up to you to ensure that such contributions and made to help your business thrive.
4) Do you know if your invoices are being sent out as quickly and accurately as possible? When was the last time you performed an invoice audit to ensure invoice accuracy?
5) Are all product and service lines contributing their full value to the bottom line? Your existing reports may not provide complete visibility into your margins.
6) When was the last time you set business goals? How do you know you’re moving in the right direction?
In Summary
One of the most crucial roles of small business owners is financial control and financial management. As a director or sole proprietor, you must assess the possible effects of your financial controls and their impacts on income, profitability cash flow, and the company’s financial health. If you do not have the time or experience to properly manage your business finances and set up proper financial controls to ensure the financial health of your business, a virtual CFO may be the perfect solution for you.
Speak with Philip Khao from Solve Accounting on 0412651779 or at philip@solveaccounting.com.au to find out more about Virtual CFO services.
Philip Khao is a Chartered Accountant (CA), Virtual CFO professional and Director at Solve Accounting with many years of accounting and business services experience at global accounting firms and multinational corporations.
Purchasing an existing company is a great way to expand your business empire. You can…
Whether you’re applying for government subsidies, taking out a business loan or seeking investor support,…
Founding, building and growing your own small business is a hugely rewarding experience for many…
As a business owner, you know you need to produce accounts – that’s a given.…