Effective Financial Management:
Understanding your numbers and how they drive the success or failure of your business is essential to understanding why you are where you are and creating a road map for moving forward.
Do you know whether your gross margin is adequate?
Are you charging enough to make a reasonable return? Or will the business be forever a shoe string operation?
Do you understand your working capital flows or are you always short of cash?
Do you have a forecast for the next 12 months?
Do you know how much cash will be required and do you have the credit available to you?
Do you know your break even sales ?
Do you have actual measurements of the health of the business?
Do you have monthly financial reports 2 weeks after the month’s end to assess your performance against your forecast?
Do you have a session with your management team to assess the variances from forecast?
Do you have an annual business performance review to analyze your key financial ratios.
Do you have an annual Business succession planning session to prepare for inheritance and protect assets from tax liability.
Does your accountant prepare a calculation of estimated business value using comparable company sales and giving a general guideline of valuation.