Skip to content

USEFUL Systems to Measure Your Progress

Receiving reasonably accurate financial reports on a timely basis which provides useful information to you can have a large impact on your current and future cash!

Business owners need to receive useful financial reports during the year to operate their business profitably. Owners can use those reports to identify favorable or unfavorable trends. Using that information, you can take appropriate action to capitalize on the favorable trends or to reverse negative trends. By monitoring recent results and changing course when needed, you should improve the profitability and the value of your business. This results in more cash flow, now and when you ultimately dispose of the business. This is important, because your business is probably one of the largest investments you will rely on to provide cash in your retirement years. To make this possible, your business needs an accounting system in place to empower your staff to issue useful reports to you. See USEFUL REPORT to see what we believe makes reports useful to owners.

If you are a privately-owned business, you may not employ accounting staff with the expertise or the time to address your financial accounting and reporting needs. This is where my Firm can help. For example:

  • We can meet with you to help you understand the financial data you need to monitor profitability, liquidity and growth in the business's value -- all affecting your cash flow now and in the future when you dispose of your ownership interest in the business. We seek to identify report formats that help you to monitor key results and identify unexpected trends.
  • We will help you to assess whether the software you use now has the capabilities to meet your information needs. If your business uses specialized software, I have experience teaming up with software vendors, with the goal of helping you as the owner to get the financial information you need to maximize your profits.
  • We will work with your staff, with the goal of empowering them to provide management with useful financial reports during the year.
  • We often find ways in which your staff can record transactions faster and more accurately. This reduces the time and effort your staff expends recording transactions.
  • We can help your staff prove the accuracy of assets, liabilities, and key incomes and expense accounts. Proving account balances is the key step towards ensuring that you receive reasonably accurate financial reports to take appropriate action to capitalize on favorable trends and reverse negative trends, to meet the business's profitability and growth goals. We find that staffs appreciate the ability to prove account balances. This is because the staff can independently feel confident that they are issuing reasonably accurate reports to management.
  • I can develop key financial ratios and other key performance indicators that you can use to monitor your business's progress in meeting its profitability and growth goals. We can also develop financial ratios so you can monitor indicators affecting future cash flows, such as the current and quick ratios, the Sales growth to Accounts receivable growth ratio; the Days sales outstanding in accounts receivable; Days of product costs in inventory; Days of product costs in Accounts Payable; and the Average cash conversion cycle.
  • We can help you to read the financial reports to identify favorable or unfavorable trends. I like to meet with you to discuss at least the first few financial reports, to help you read them and make appropriate conclusions about the numbers. Also, we can learn how you read reports. I strive to find ways to revise the report formats to make them easier for you so you can make conclusions and take actions to improve the profitability and value growth of your business.
  • We can be available to oversee your staff's recording and proof of account balances. At a minimum, we do this prior to tax planning, or when we prepare financial reports and income tax returns. We can report to you areas in which your staff may be providing you with incorrect information. This helps you to feel confident about whether staff provides you with reasonably accurate financial reports. You also feel confident that we are preparing reasonably accurate financial statements or income tax returns.

We understand that it is more cost-effective if your staff can eventually perform accounting tasks without our constant assistance. When it is practical for your business, our goal is to empower your staff to record transactions, to prove account balances, and to issue reasonably accurate financial reports to ownership and management on a timely basis. However, if your staff does not have the expertise or the time to perform accounting tasks, we will be available to help as needed.

Here's another benefit to implement an effective accounting system in your business: If the business has an accounting system that accomplishes the above, a year-end is just another month. In other words, your staff will already have available most of the information we need to plan for taxes, and prepare reasonably accurate tax returns and CPA reports! An effective accounting systems in your business reduces our fees for bookkeeping -- so you pay for "higher-end" services that can help you to achieve your goals.

  

If you have any accounting and reporting needs you would like to discuss, please call Jim Blowers at (518) 344-6087. My initial consultation is free!