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Elevate Your Financial Reporting for Growth and Prosperity

By: Shane Bender on Oct 16, 2023 1:50:20 PM

Forecasting & Modeling Reporting & Analysis Fractional/Outsourced CFO
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Are you in control of your business's financial destiny? Understanding your profitability and cash flow on a consistent basis is essential for making informed decisions and achieving success. In this blog post, we'll explore the financial levels of success for small- to mid-sized businesses and guide you on how to elevate your financial reporting to achieve your goals.

Level 1: The Basic Foundation

Every business, regardless of its size, should have a firm grasp of its financials. Monthly, or even weekly, basic level accounting and finance practices are crucial. Falling behind even by a month or two can lead to poor decision-making and unexpected financial setbacks.

Here are the fundamental tasks that should be completed by the 15th of the following month:

  • Recording all bank and credit card transactions and reconciling accounts.
  • Reviewing unpaid customer invoices and following up on them.
  • Managing unpaid bills and making necessary payments.
  • Processing employee expense reports.
  • Billing for all products and services.
  • Handling payroll and benefits.
  • Generating an up-to-date Income Statement and Balance Sheet for the previous month.
  • Analyzing financial statements compared to previous months, years, and budgets.

Level 2: Moving Up to Moderate Financial Reporting

If your business is on a growth trajectory or you seek external funding, you'll need to step up your financial reporting game. Improved monthly financial reports have several benefits:

  • Enhanced trend and revenue/expense forecasting.
  • Attraction of investors and lenders.
  • More efficient expense management.

To achieve moderate level financial reporting, consider these five key components:

  1. Prepaids and Accruals: Handle prepaid expenses by dividing them evenly over the period of use. For expenses incurred today but paid later, create accruals.
  2. Estimates and Provisions: Estimate future expenses, such as bad debt on Accounts Receivable, and create provisions for items like obsolete inventory.
  3. Fixed Assets and Depreciation: Properly record and depreciate fixed assets to reflect their useful life.
  4. Forecasting and Trending: Use consistent financial data to forecast cash flow and profitability by various factors, such as client, product, service line, or region.
  5. Key Performance Indicators and Dashboards: Implement KPIs and real-time dashboards to monitor current performance, helping you make timely adjustments based on your financial data.

Ready to Take Control of Your Financial Future?

Elevate your financial game with Bender CFO Services. Our team of experienced fractional CFOs is here to help you navigate the complexities of financial management, no matter what level your business is at. From basic financial foundations to advanced strategies, we've got you covered.

Closing Thoughts:

Start small and gradually work your way up. Remember, even the most successful businesses started somewhere. Now is the time to take control of your financial future and position your business for success.

Don't wait any longer. Contact us today to get started on your path to financial success.