Do you know how to read a financial statement? Are you using financial metrics to manage your business? Do you have an understanding of how to manage your cash flow? If not, we can help.
To the trained eye, your financial numbers tell a story. They help us understand how you’re faring versus you competitors across key metrics and help lead us to where the “pain” is in your business. With most of our clients the best place to start is cash flow as, without cash to run your business, well…we know what happens here. Would it be helpful to know, definitively, how much cash you have coming in and how much you have going out and be able to trend this over time so you can plan for shortfalls and surpluses in the future? Would you rest a little easier at night knowing where your money is? We can teach you how.
Running the Business by the Numbers
Once you’re comfortable in reading financials, the next useful step is ensuring your direct and indirect costs are captured accurately in your Chart of Accounts. If not, you will not be able to accurately calculate your profit by segment of business or profit and, as the old adage goes, “if you can’t measure it you can’t manage it! Having your costs accurately accounted for is the “backbone” of sound financial management and is a pre-requisite for establishing sound financial targets and goals. We’ll teach you how.
Once cash flow is under control and costs are properly assigned, we can begin looking in more detail at measuring how we are performing on factors that are important to the business – in short business metrics or a “dashboard” of important measures we know we need to monitor to ensure the business is successful. This also positions us to look at the business strategically and plan for growth in areas where profit is higher and looking to improve efficiency or eliminate business lines where profit is lower. With accurate numbers we can look at establishing sound business plans with metrics that serve as realistic goals. Let us help guide you on the creation of the right metrics and management dashboard to manage your firm.