You have never been busier in your life and your business is growing. Your sales are increasing, you are hiring more employees, and you are obtaining new customers. The problem you have is cash flow. It simply doesn’t appear to be at the levels you are expecting when you consider the success you are enjoying. And you are spending a lot of your valuable time on certain things that really are not helping to grow your company. For example, accounting.
I have worked with many entrepreneurs. They are mainly inventors and salespeople – not accountants. They know how important cash is and have been able to build successful businesses and have an intuitive feeling for how cash can be generated. However, at some point, a business grows past intuition. In order to thrive, businesses need to have systems and financial processes in place. The following are 5 signs that your company might have reached this point.
Not receiving the financial information that you need
QuickBooks is used by many startups. It is a great tool for businesses that are just getting started. Usually, a tax accountant sets it up to help the business owner prepare their tax returns. However, the problem of getting accurate information into QuickBooks and obtaining good data from it. It shouldn’t be as hard as it is to obtain the financial information that you need for running your business. As your business continues to grow, your accounting will have more complexity and transactions. So how can you parse what is important for your business and what is not?
You never have enough cash
It is the #1 problem that our new clients have. They have a good feeling about when their balances of cash will increase and decrease but they do not track their cash on a regular enough basis. They would like to have more stability and predictability to their cash flow to help them make more informed decisions. Also, they would access capital – to provide cushioning for the inevitable ups and downs.
You would like to have a financial plan you can follow
It has been proven that businesses that plan enjoy better performance. You do understand how important it is to create a financial plan, but when will you ever have time for it? And after it is completed, how can you measure and track your performance against your plan?
You need to have a financial “sounding board”
Once in a while, it would be nice to be able to talk with somebody about your business. Of course, you have mentors, advisors, and friends that would love helping you out. However, sometimes it is necessary to go deeper into the details of important matters to you and your business: how much should I pay a person? Why should the pricing be on my new product? What risks does my company face that could potentially put me out of business?
You would like to spend your valuable time working on your business, instead of in your business. I talk to many business owners who spend way too much of their time working in their businesses, particularly on their books. She or he would like to see things in certain ways, but their bookkeeper doesn’t appear to be able to get the books in the shape they need to be in. Therefore, the owner has to step in and spend a lot of time obtaining financial information instead of building their business.
If all or any of the reasons above sound like what you are going through, it might be time for you to think about hiring a Virtual CFO for your business. It is a very cost-effective way that allows you to free up your valuable time so you can focus on growing your business.