As a Business Owner, Are You Keeping Score?

By Rich Bond

Scores are amazingly useful. They tell us who is winning. Scorecards add additional information, like runs, hits, errors; or if you play golf, your bogies and birdies, hole by hole.

But how do you keep score of how well your business is doing?

How predictable are your financial results?

Some business owners have confided in me that they have the following problems with their finances:

– Unplanned surprises
– Accounting errors
– No financial review meetings
– No or incorrect explanations
– Poor reporting of actuals versus budget and/or plan
– No commentary with financial results to help them understand the results.

It doesn’t have to be this way with a strong financial person on your team. Such a person, like a Controller or CFO:

  • Understands how well or how poorly the business is doing and communicates that to you on a regular basis so that you can take action as early as possible.
  • Makes recommendations on potential corrective actions.
  • Will give you a monthly scorecard with a few key financial indicators that will give you a clear picture of what’s really happening behind the scenes – and what to do about it.

If you don’t have a financial person or team you can trust to help you keep score and grow your business, talk to me. I can help you determine if finance is helping or hurting your business in one quick phone call.

 

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