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:

  1. Your finance manager doesn’t take holidays – or only takes short breaks
  2. Keeps a very close team and resists any external help – even resists hiring new help
  3. Erratic reporting
  4. Late or excuse-laden reporting
  5. Defensiveness to any probe
  6. Scapegoating and blaming others for errors or late reporting
  7. 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.