Are your financial fundamentals in order?
Sound financial management is a given for any business. It is the foundation for a business that wants to prosper.
The trouble is that for many private businesses – not subject to regular audits – their financials are not in great shape.
Before penning this blog, I looked far and wide to see if much had been written about this topic and surprisingly very little exists.
Often times we find that the problem is a mix of:
- the business owner doesn’t understand accounting and therefore provide the right scrutiny
- the business has outgrown the capabilities of its finance manager
- weak external oversight by the external accountant
The following signs should help in alerting you to potential problems in this critical function of your business:
- Your finance manager doesn’t take holidays – or only takes short breaks
- Keeps a very close team and resists any external help – even resists hiring new help
- Erratic reporting
- Late or excuse-laden reporting
- Defensiveness to any probe
- Scapegoating and blaming others for errors or late reporting
- Sales are strong yet constantly running short of cash
If you would like to have a confidential chat about any concerns you may have in this regard, please call Jeremy directly on +61(0)402 242 670.