Over the years, I have talked to many business owners who tell me that even though they monitor their financials scrupulously, they still get unpleasant surprises.
What they don’t know is that it is not the amount of TIME you spend on finance; it is how you spend that time.
When I ran my family’s business, my father, brother, and I spent less than 30 minutes per month going over a one-page schedule, primarily comprised of operational statistics along with a few financial numbers.
When I spoke to a Vistage group recently, the members, who were all business owners, were unanimous in saying that reviewing a limited amount of information, usually KPIs, made their businesses easier to run and made their jobs more fun.
One other statistic most private businesses usually don’t get from their accounting or finance people is cash flow. A business needs a monthly cash flow statement and a 90-day cash flow projection.
Even good businesses can easily run low on cash.
The sooner you know you’ll be running low on cash, the more options you will have to deal with it.
Please reach out to me if you want to determine if your finance function is helping or hurting your business.