Garbage In, Garbage Out. That means you get reports -- but the information isn't correct. You could make bad decisions based on bad information.
Incorrect reports are useless at best; and can be destructive if you make incorrect decisions based on incorrect information. What can your business do to be reasonably sure that you receive accurate financial information to monitor your profitability and cash flows?
Solution -- Phase III. My Firm will show your staff how to periodically prove the accuracy of key account balances. These steps can empower your staff to identify account balances that are not correct. Many times the account balance is incorrect because your staff simply forgot to record some transactions. These steps helps catch those omissions or incorrectly coded transactions. The result -- you receive accurate financial reports from which you can take any action needed to meet your sales, profitability and cash flow goals.
Often, we create a checklist customized for your business that your staff can use to make sure they check those balances before they issue reports to you. We review the checklist with your staff for the first month. We meet with them after they try to complete the checklist in the next month to help them with the steps they can't complete by themselves. This process takes about 2-3 months for your staff to fully understand how to prove the balances. The result is that your staff becomes empowered to provide management with reasonably accurate information, without our constant assistance. You as management are now empowered to monitor your profitability and cash flows; and to make informed and timely decisions to take appropriate action to maximize favorable trends or to stop unfavorable trends.
Of course, we charge fees to show your staff how to prove key account balances. But the payback for implementing Phase II is generally returned after two year-ends. This is because we spend less time correcting errors to get reasonably accurate numbers to use for tax planning or at year-end. Your staff has been staying on top of the account balances during the year. Your business's year-end is simply another month for your accounting staff, so they have completed most of the bookkeeping by the time we receive the information for tax planning and for year-end work.
More important than the payback, though, is that you receive information throughout the year. You as management are now empowered at almost any time of the year to monitor your profitability and cash flows; and to make informed and timely decisions to take appropriate action to maximize favorable trends or to stop unfavorable trends. In addition, we can help you proactively plan for taxes or help you at any time to implement strategies -- since we can both be reasonably sure that your business's numbers are accurate.
I understand that it would be difficult to pay for these services in 30 days. Don't let that stop you from using my Firm to empower your staff on how to prove key account balances throughout the year. I am willing to spread the payment over multiple months. Please call me to discuss how we can implement these proof services. I can also discuss payment arrangements with you.