Many businesses primarily use the accounting function for statutory purposes; collecting receivables, paying vendors, paying taxes, paying the bank, etc. Financial statements are prepared primarily to keep the bank “happy”.
Exceptional businesses use financial information to proactively run the business by:
- Understanding what the numbers mean and what decisions need to be made.
- Setting company goals and monitoring progress to make timely and appropriate changes to achieve the objectives.
- Forecasting future results and making the necessary changes to achieve the desired outcome.
Companies not using financial information to proactively run the business are at a competitive disadvantage.
CFO 4 Small Biz™ can help your business utilize financial information to improve operating results by offering a Monthly Financial Management Service at three different levels (Silver, Gold, Platinum) that includes “On-Call” Support. See Financial Management for more information about our service.