Having solid Financial Statements provides a clear picture of the financial health of your business – clarity in the overall financial picture. This level of visibility is critical in making good, strategic decisions about your business, it’s priorities, operations and long-term investments. Useful financial statements are only produced by having a transparent accounting system and/or ERP where consistent and proper cost allocations are key to defining the cost drivers of your business, what’s making you profitable, or what’s dragging you down.
A skilled CFO can analyze the financial information that your company’s accounting system provides, and walk back through the financials to identify operational issues and provide answers to the company’s critical operational questions. They will be able to correct (when needed) and provide proper analysis of the variances, the Key Performance Indicators (KPIs), that will shed light on where greater efficiencies can be found, ultimately increasing the company’s bottom line.
How Transparent Are Your Financials?
Critical Questions to Consider
- Are you regularly receiving the three reports that are key to understanding how your business is doing?
- Balance Sheet
- Income Statement
- Statement of Cash Flows
2. Do you understand what all of these reports are telling you?
3. Do you have confidence in the accuracy of these reports?
4. Are you getting the detail that you need to make decisions?
Many business owners look at few critical numbers on their financial reports. They look at Sales, Gross Margin and Net Income. They consider these the all-important numbers. But what is important is whether you are getting enough information in your reports to make changes in your business today that will make your company more profitable tomorrow.
CFO Simplified will take those complex reports and bring clarity to the numbers so that you can manage your company with greater confidence and knowledge, enabling you to make the critical decisions that need to be made every day.