The Financial Intelligence Guide

Anyone who has raised a teenager knows they can sometimes be challenging. If you have not raised one, try to remember how you thought and acted at that age. What if the business world acted like a teenager? What would happen? The funny thing is that many of us adults act like this from time to time, so you might find this convicting. I know I did.

Fractional CFO’s have become increasingly important to most small businesses. Almost all businesses have a tax CPA to help them file their tax returns. As companies grow, they typically outsource to a bookkeeping firm or hire an entry-level office manager or accountant. So then why should any business need a fractional CFO? I have found that once a business is over $1-2 million in revenue, it makes sense to hire a fractional CFO, especially if you have these questions.

Do you wait months after the end of the month to see how you are doing financially? Are you able to review financials each month consistently to prior months? Do you make decisions using your Income Statement and Balance Sheet with actual results and a forecast?

The holidays are here. We are spending time with family, eating turkey, buying presents, and just enjoying the holiday season. As the year comes to an end, there may be this unclear feeling in your mind. Do you want to expand? Do you want to hire employees? Do you need to make some cost reductions? Do you need to start the next year with an increased focus on business development? There are so many things to consider. How do you increase this clarity? What do you do?

5 Stories of How Forecasting Provided Clarity and Cash By Shane Bender

By Shane Bender, Founder Bender CFO Services

5 Ways to Focus on Profits  As a business owner, do you feel you are not getting paid what you are worth? Have you not taken a profit distribution in years or not even know what a profit distribution is? Do you dread tax time because you do not have enough to pay your taxes regularly? Have you bought into the lie that that best way to grow your business is through bank loans or investors?

The Business Assessment that leads to Success 25% of all start-ups fail within one year, and 50% of businesses fail within 5 years.  Staticbrain.com states that “incompetence” is the number one reason for business failure. I know this seems harsh, but it isn’t too surprising. It is difficult to be good at everything. Most likely, a business is good at making a product or providing a service, but might not be good at planning, finance, accounting, pricing, taxes, and management.

Have you ever asked yourself where is the cash is really going in your business? You might be wondering how you are profitable but don’t ever seem to have enough cash. Have you wondered if you should expand through hiring, a new office, or a new product line?  Or perhaps you are worried about the possibility of making payroll if you lost your largest customer or supplier? Have any of these questions kept you up at night? In smaller businesses that do not have a Controller, CFO, or Finance Director on staff, these questions are common for business owners. Wouldn’t it be great if we could know how much cash we would have on hand next month, in six months, or even next year?