Over the past few weeks we’ve been exposing the accounting and finance problems many small businesses experience. Let’s briefly review those problems and examine the possibilities if the problems were solved.

The Problem- Lack of Financial Clarity

You’re paralyzed from aggressively driving your company forward because there’s a lack of financial clarity. The uncertainty is the result of not having accounting processes in place that produces accurate and timely financial data. You don’t know your financial numbers, the financial results of your current operations, and have no ability to predict financial results from major strategic initiatives.

The Possibility: An accounting and finance division that is providing the support you need to make the right decisions in your business.  Your division will become a source of power and competitive advantage, not a source of frustration and uncertainty.

It’ll be a huge relief to know your bookkeeping and accounting is up to date and accurate. 

You have the advantage of knowing your current financial position, your KPIs (key performance indicators), and the drivers to your profitability and cash flow. 

As you strategize your business growth plans you’ll have the confidence of understanding how to guide that growth to build a financially stable and healthy business. You’ll be able to predict how your key strategic initiatives will impact the business’ financial position. 

The Problem- Financial Blind Spots

Financial blind spots are a result of growing your business while not having the financial background or expertise to analyze the financial results of that growth. It’s not your fault, nor is it unusual. 

You started a business out of a passion to serve your customers and fill a need in the marketplace not to be a master of finance and accounting. Inside of growing your business your faced with being a “jack of all trades” – marketing & sales, production & delivery, and of course accounting & finance. 

The Possibility- You can overcome the gap of not having that financial background by building it into your team.  With complete access to the coaching and financial mentorship needed, your business will grow in the right way, the financially stable way.  Doesn’t that sound nice?

You can understand what moves need to be made to improve profits and cash flow. 

You no longer feel the uncertainty and uneasiness of having financial blind spots. Your business has access to the expertise to provide analysis in all the key financial areas of your business, such as:

  •         Understanding and managing current short-term cash flow
  •         Gross profit margin improvement
  •         Managing overhead expenses
  •         Managing balance sheet health and liquidity
  •         Projecting and anticipating future cash flow needs
  •         Projecting and anticipating other future resource needs (like additional personnel), and how that will impact profitability and cash flow

.The Problem – The Capacity Gap

Fortune 500 companies have a CFO, a VP of Finance, VP of Accounting, a Controller and a whole team of accountants and bookkeepers to support them in managing the business’s finances. The reality is your small business has the same financial information needs as the Fortune 500 company but likely can’t afford to hire the same level of talent and expertise. Your business faces a capacity gap that causes a lot of uncertainty and “flying blind” as your trying to grow and stabilize your business.

The Possibility- Your accounting and finance division gives you access to all the levels of expertise needed, when it is needed at fractional costs.

There is no longer an accounting and finance capacity gap in your business. You no longer feel like you are flying blind just because you can’t afford the level of expertise you need at a full-time rate.

This includes systematizing the whole accounting process, reporting financial data to key personnel, performing analytics on the data to find meaningful patterns and indicators, and assisting with applying those patterns and indicators towards effective decision making. 

The Problem – Attitude Gap

It’s only natural. We tend to shy away from our weaknesses or completely ignore them. But when a weakness centers around one of the three core processes in business, it hurts our business’s ability to grow, and our own ability to grow as a leader.

Of the three core processes in business – marketing & selling, production & deliver, accounting & finance – most small business owners have a weakness in accounting & finance. That weakness is causing an attitude gap.

The Possibility- If you can face and change your attitude towards the weakest core process in your business, you can start to change the results. 

  •         You understand that each of the three core business processes must be strong for business to survive long term. And you start to put as much importance on accounting & finance as you do on marketing & selling.
  •         You view the bookkeeping and finance as a key process in your business that can and must be systemized. No different than the efforts you have put into systematizing your production & delivery processes.
  •         You understand that managing finances is much more involved than knowing how much money is in the bank. You’ve put in the effort to understand how to read your financial statements. You surround yourself with a support team to help you understand your KPIs and use key financial data to help you in daily decisions.
  •         You now know that if you understand gross profit, net profit and cash flow, you can drive top line sales without driving your business into bankruptcy.
  •         With solid accounting processes in place and with the expertise in place in your finance department, you can now predict if your growth initiatives will result in improved profits and cash flow, and when.

Imagine! Your accounting and finance department is actually a source of strength, support and vision. Not a source of frustration.  Sound too good to be true? It’s not. That’s core to what we do at Financial Optics. If these possibilities sound great, fill out a form so we can get to know each other better!