By Rich Bond
Before the advent of advanced air-monitoring technology, miners relied on canaries as their early warning system. These delicate birds, highly sensitive to toxic gases, would alert miners to danger by succumbing to the poisonous atmosphere long before the humans did, allowing the miners to escape unharmed.
But what about your business? How can you, as a business owner with limited financial expertise, uncover hidden signs of financial trouble lurking beneath the surface? How can you be certain that your Controller/CFO is diligently safeguarding your company’s financial health?
You can have your own company canary. Here’s an example:
How long does it take to close your books each month? If it’s taking 10 days or more, that’s like a canary gasping for clean air. Astute companies typically wrap up their books within three to five business days.
With only 22 business days in a month, if your finance person is perpetually preoccupied with deciphering past performance, they won’t have the bandwidth to pick up on potential problems or identify potential growth opportunities.
That’s not all. Using my experience as a business owner, corporate finance employee, and financial recruiter, I’ve uncovered six additional, easy-to-grasp performance indicators that can assess your business’s health in just 10 minutes.
Contact me, and I would be happy to go over the indicators together. Should we discover any red flags, we can explore corrective measures, such as remediation (coaching of your finance person) or even a discreet change in personnel.
The consultation is complimentary and carries no obligation. Let’s ensure your company’s financial future is as vibrant as the canary’s song.
