The next death by another little cut:
Abdicating the Responsibility for the Financial Side of Your Company
“I hired a bookkeeper. Now I don’t have to worry about the books anymore.”
This fall I wrote about a CFO who stole millions because the owners stopped paying attention. They trusted him. He is now in jail.
Then there is the story of the nuns who stole from the religious school to gamble in Las Vegas. They were indicted too.
Theft is prevalent in small businesses and it often happens when you stop paying attention to the financial part of your company. You can delegate responsibility for the day-to-day bookkeeping activities. You must retain oversight and review every week and every month. It’s your business. You have to oversee all of it, including financials.
Your financial Statements are your scorecard. You have to know what they are telling you.
Each month you should receive a profit and loss (P&L) statement and a balance sheet. Your profit and loss statement is also called an income statement.
Your bookkeeper should give you these reports by the 15th of the following month.
Get a timely, accurate financial statements each month – including aged receivables and aged payables.
An accurate profit and loss statement and balance sheet by the 15th of each month – and preferably by the 10th of the month. In the old days we had to wait until our bank statements came through snail mail so the 15th of the month was the norm. Now you can see your bank statements every day on line. No more excuses!
Along with the financial statements should be an aged accounts receivable and accounts payable report. If the aged receivables don’t match the receivables amount on your balance sheet or the aged payables don’t match the accounts payable amount on your balance sheet something is VERY wrong!
This is your starting point.
Then in less than a minute you can get the meaning of what your financial statements are telling you. Go to www.financiallyfit.business to find out how.
Here is my holiday present to you:
Try Financially Fit Business. Put your financial statements in and see what they are telling you. We’ll take you through the process and review them with you on a Zoom call. Your investment? Only $299 for entering up to two years of financial statements and the review.
Schedule a time to get it done, see the financial health of your company, and start the new year avoiding a little cut (takes less than an hour): www.calendly.com/rking-5
It might be the best investment you make all year.
This is it for the little cuts – avoid them and you’ll have a better chance of increasing profitability and wealth.
Happy New Year!
Thanks again for reading Financially Fit Business. I appreciate you!
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Books/Audios that could help your business and you.
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