The CFO'S Perspective

The Benefits of Outsourced Bookkeeping Services

The value of working with a bookkeeper is undisputed; bookkeepers are professionals at managing the day-to-day financial transactions of business, providing the business owner with the information necessary to make sound financial decisions for the future. What’s more, there is no doubt that regardless of the type of business that you operate, bookkeeping and accounting services are invaluable, and essential for efficient operation.

Topics: Staffing Bookkeeping

What is the Appropriate Number of Roles for the Size of Your Business?

 

When it comes to sports teams, the coaches have a pretty solid picture of what they need for success. A baseball team needs nine players on the field, soccer eleven, and basketball five. But when it comes to the workplace, there is no hard and fast rule for determining the perfect number of roles for your team.

Whether you are a growing startup, or an established business, your company's products and services are only one part of the success equation. How you structure your organization can make the difference between long-term failure and success.

Here are some tips for planning organizational structure, how you can evaluate your current organization, and one way to make the most out of your team going forward.

Topics: Planning Staffing HR Leadership

Successful Cash Flow Management

The adage says, “cash is King,” and this could not ring any truer for small and mid-sized businesses. Cash is a crucial component of any successful business, especially startups and new ventures.

Cash flow is the lifeblood of organizational success.

Positive cash flow leads to profitability and provides the funds needed to reinvest in the future of the business. However, proper cash flow management is difficult for many companies to undertake successfully.

Some businesses fail to analyze cash flow projections appropriately to identify potential shortcomings, while others suffer from mismanagement of payment terms and an inability to collect outstanding payments. New businesses are prone to spend recklessly and make poor inventory choices because they lack the awareness needed to make cash flow-centric decisions. Companies struggling with cash flow management often err on several of these key elements, fueling the vicious cycle of cash flow issues.

Business executives who have problems with cash flow at their organizations (or want to avoid future issues) will benefit from earmarking these cash flow tips:

Topics: Planning Cash Flow Invoicing

Which KPIs are Best for My Business?

With so many variables across industries and business life stages to consider, a one-size-fits-all approach to KPIs will never succeed.

The most important metrics are those most closely related to what investors expect. For private companies this means tracking the KPIs that owners and financers need to make sound decisions. While the specifics can vary between businesses, the common thread is analyzing metrics which can inform short-term and long-term operations.

Overarching business goals such as profitability or liquidity will also influence KPI choices because KPIs can address different business objectives.

Topics: Planning KPI Metrics

Converting Accounts Receivable (A/R) into Cash

How quickly are you turning your Accounts Receivable to cash? Every business needs working capital to cover operating expenses, including inventory costs. You don’t want your cash tied up unnecessarily in accounts receivable. Collection of accounts receivable is essential to the health of your business. So, the faster you receive payment from your customers, the more cash you have in your business, and the faster you can grow your business.

Topics: Cash Flow Accounts Receivable