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August 5th, 2010
Is more cash flow always better?
Many business people would unequivocably say “YES!”… but I’m not asking if more CASH is better… I’m talking about cash flow.
When thinking along those lines, the answer can be a definite ”NO”.
So why can a lot of cash flow be a problem? Namely, it’s because it means that you might not be investing your cash in the wisest way.
This is where working with a virtual CFO can really come in handy. Otherwise, you might just be allowing your cash flow to gush when it would better be conserved. And that would be a waste.
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FinancialFutureCFO: Protecting your company for the future.
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Tags: cash flow, Investing, Lot, virtual CFO
Posted in virtual CFO | No Comments »
July 30th, 2010
As an entrepreneur, are you getting a paycheck every two weeks, every month or any other time? Or are you simply continuing to put everything back into your business and only pulling out money for yourself when it’s absolutely necessary?
Though many people fall into this kind of trap, it’s a bad idea and not a long-term solution at all. If you’re making any kind of a profit (and if you aren’t, it’s time to rethink your sales and marketing plans), you need to start paying the top dog — YOU!
How much should you give yourself as a salary? It all depends upon a number of factors… which is where the help of a virtual CFO can come in handy. A virtual CFO will assist you in making sure that the paycheck you receive is fair without hurting your company.
Remember — taking a paycheck isn’t selfish. It’s a smart business move.
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FinancialFutureCFO: Protecting your company for the future.
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Tags: Bad Idea, Business Move, entrepreneur, Handy, Long Term Solution, Marketing Plans, Money, Paycheck, Salary, Sales And Marketing, Sales Marketing, Smart Business, Top Dog, virtual CFO
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July 26th, 2010
As a business person, do you ever find that you are essentially living entirely off your cash flow? In other words, do you spend the money you receive as soon as it comes into your company?
While this “in-one-door, out-the-other” style of managing your cash flow isn’t unusual, it’s also not a method for achieving long-term success. Essentially, you’re just breaking even.
With the help of a virtual CFO or a CPA, you can determine the wisest ways to make the most of the cash coming into your business so you don’t allow it to slip needlessly away. Even if you can only put aside a small portion of it each month, you’ll be ahead of the game down the road.
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FinancialFutureCFO: Protecting your company for the future.
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Tags: Ahead, Business Person, cash flow, CPA, Game, Money, Small Portion, Term Success, virtual CFO
Posted in cash flow management | No Comments »
July 23rd, 2010
“Do you take credit cards?”
It’s a phrase that has become more and more common throughout the years. And if you’re working with a CFO, it’s time to have “the credit card” discussion.
What should your conversation look like?
Check out these questions from which you can springboard a talk:
If you’re not currently accepting credit cards, you and your CFO can do the following…
→ Using financial and sales metrics, evaluate if you’re missing out on sales by not offering this as a payment option.
→ Thinking in the future, could you afford the costs associated with processing credit cards?
→ Looking at your bottom line, how would credit cards help you? How could they hurt you? Would you have to raise prices? Is that feasible?
On the other hand, if you are currently accepting credit cards, you and your CFO can do the following…
→ Looking through your balance sheets, determine if your clients are using credit cards often. Which ones are? Which ones aren’t? Has it increased sales?
→ Examining which credit cards you accept, are they the best ones for your business right now? Are you getting the best rates possible? Should you look into different or additional credit cards?
→ Thinking about the future, would it benefit your company to move almost all payments to credit card payment options?
Again, depending upon your situation, you’ll have a variety of responses. And this won’t be a meeting that can be resolved in a day (unless you’re a very small operation.) But it’s a pertinent discussion to have and you’ll be happy you took the time to evaluate your business situation.
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FinancialFutureCFO: Protecting your company for the future.
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Tags: Accepting Credit Cards, Balance Sheets, Bottom Line, Business Situation, Credit Card Payment, Credit Help, Metrics, Payment Option, Payment Options, Perspective, Phrase, Sales Metrics, Springboard, Using Credit Cards, Variety
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July 20th, 2010
Do you have mounds of paid bill receipts that you feel you need to keep on file? Do you send out invoices every month via “snail mail”? Do you “document” items and events by printing off emails, printing out spreadsheets, etc.?
If you found yourself nodding at any of these items, you’re not alone. Most companies talk a great deal about moving to a “paperless” system, but it can be darn difficult. That’s especially true in the area of fiscal management.
While it may not be possible to go entirely without saving or printing on paper, you probably do have some alternatives that can lessen the load that storing reams and reams of paper can present:
1. Try moving to online banking where you can pay some of your bills with ease. Just make sure you’re doing this as safely as posssible to mitigate any security breeches.
2. Unless you have to print off paper invoices, try to move to a different system that requires no paper at all, such as via email or a secure payment system.
3. Rather than printing documents, consider saving them on a protected server (offsite if you feel safer).
By taking these measures, you can help cut down on all the “stuff” in your workplace and streamline your accountancy processes to boot!
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FinancialFutureCFO: Protecting your company for the future.
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Tags: Breeches, Email System, Emails, fiscal management, Measures, Mounds, Moving, offsite, Online Banking, Paper Invoices, Paperless System, Pay Bills, Printing Documents, Printing Paper, Reams Of Paper, Receipts, Secure Payment System, Snail Mail, spreadsheets, System 3
Posted in entrepreneurs, financial management | No Comments »
July 16th, 2010
“I’ll do it tomorrow.”
How many times have you said that about everything from calling a prospect to finishing your billing for last month?
As humans, we tend toward procrastination from time to time (or more often, in some cases!) While that can be okay for some things (e.g., if you don’t vacuum your rug today, no one will probably care), it can be devastating for others… such as cash flow.
You need to get on the ball and start making that cash flow for you now… not tomorrow or the next day or next month or… well, you get the picture!
Not 100% convinced? Give me five chances to sway you:
- If your cash isn’t “flowing”, you’ll be unable to pay your bills. That means you’ll have no business.
- The tax laws are always changing. Get your finances in order now so you can be prepared when they come!
- You may not be on top of collections, which will only hurt YOU.
- Good cash flow is the sign of a strong business. If your cash flow isn’t strong… well… you can fill in the blanks.
- When you have good cash flow, you can tell potential employees (or even clients) of that fact. It speaks volumes about the way you run your organization.
Get your cash working for you immediately. Give me a call and we’ll talk about how to unclog your cash “drain”!
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FinancialFutureCFO: Protecting your company for the future.
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Tags: Billing, Cash Drain, cash flow, Collections, Finances, Organization, Pay Bills, Procrastination, Unclog Drain, Vacuum
Posted in cash flow management | No Comments »
July 13th, 2010
It’s mid-summer and I’m here to tell you that if you think that all CPAs are lolling on the beaches, just running out the clock until tax time, you’re gravely mistaken.
CPAs actually work 12 months out of the year, though our press is frequently limited to January 1 through April 15. (And it’s more so toward the latter date than the former!)
If you’ve never worked with a CPA to help plan your business, I encourage you to start now. A well-rounded CPA will be able to guide you through the waters of this strange economic landscape and enable you to make the most of your current financial situation. Together, you’ll be able to tackle each obstacle and uncover each opportunity with panache.
What’s not to like about this kind of partnership?
Best of all, when tax time DOES roll around (and it always happens sooner than you expect, doesn’t it?), you’ll have a CPA on board who can efficiently handle the paperwork associated with your taxes. It’s a win-win!
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FinancialFutureCFO: Protecting your company for the future.
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Tags: 1 April, 12 Months, April 15, Beaches, Clock, CPA, Cpas, Current, Economic Landscape, Financial Situation, January 1, Limited, Mid Summer, Obstacle, Opportunity, Panache, Paperwork, Partnership, Running, Strange, Tax Time
Posted in Change your CPA | No Comments »
July 9th, 2010
Do you have a CFO on staff (either a traditional CFO or a virtual CFO) who eschews what’s modern in favor of the “old-fashioned” methods? While that may seem okay on some levels, it’s important to be certain your CFO’s techniques aren’t outdated.
It’s not that your CFO wouldn’t be able to do the basics of his or her job without understanding technology; after all, an abacus will add as well as a computer will. It’s just that the further away from the latest technology that your CFO gets, the harder it will be to:
a. Get him or her to take advantage of software that could make him or her a whole lot more efficient.
b. Get him or her to contribute to a blog, Facebook business account, Twitter page, etc.
c. Get him or her to relate to modern business concerns that are technology-related (like why you need to pay a firm to offer offsite data storage or co-location services.)
If your traditional or virtual CFO isn’t able or willing to step up to the plate, it may be time to make some hard decisions. Technology is only going to change more and more radically. You cannot afford to have your organization left behind.
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FinancialFutureCFO: Protecting your company for the future.
Join FinancialFutureCFO on Twitter.
Tags: Abacus, Blog, Business Account, Business Concerns, Co Location, Hard Decisions, Job, Latest Technology, Left Behind, Location Services, Offsite Data Storage, Organization, Twitter, Understanding Technology, virtual CFO, Whole Lot
Posted in technology, virtual CFO | No Comments »
July 6th, 2010
Every day, entrepreneurs and business owners take risks — it’s just part of the job. They have to make decisions and sometimes can’t get 100% of the information in time to completely predict an outcome. While that’s somewhat expected, I’m here to say that it’s no excuse for taking on unnecessary risks.
For instance — are you playing roulette with your company’s finances? You may not realize that there are financial management choices you’re making that are actually putting your business at far too great a risk.
Perhaps it’s the way you’ve structured your billing or the method you’re using to pay your employees or vendors. Maybe you’re just not being wise with the ways you’re allocating the revenue that’s coming into your organization.
If you’re not 100% sure that you’re being proactive about the risks your company faces financially, I encourage you to get help from someone who understands. There’s no reason to put your business in harm’s way, especially when so many risks can be thwarted.
And, of course, if you’re looking for a virtual CFO, I’d be happy to provide you with a free telephone consultation. Just email me today at Scott(at)FinancialFutureCFO(dot)com.
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FinancialFutureCFO: Protecting your company for the future.
Join FinancialFutureCFO on Twitter.
Tags: Billing, Business Entrepreneurs, Business Owners, Decisions, Excuse, Faces, Finances, financial management, Free Telephone, Job, Management Choices, Organization, Playing Roulette, Proactive, Reason, risk, Telephone Consultation, Unnecessary Risks, virtual CFO
Posted in Protection, risk management | No Comments »
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