Tag Archives: Small Biz

Entrepreneurs on the State of Small Business

In this blog I include a link to an article by INC Magazine on what entrepreneurs think about the state of small business. Small Business owners should find the results very interesting.  As an example one question is ” What would you say your business is worth today versus five years ago?”. Here is the article titled “Entrepreneurs on the State of Small Business“. (An advertisement may first appear, if so you can skip the add.)

Take a look and see how your answers compare.

I’ve been absent for several months dealing with family issues. I will be publishing this blog in the future on a weekly basis. CFO 4 Small Biz provides financial guidance for small business from start-up to $30 million.

Is your financial guidance exceptional?

If not, contact me.

Dave Mayo, CPA, CGMA
Founder & Partner
CFO 4 Small Biz TM

The Top Five Accounting Issues That Cause Small Businesses To Fail

Last November Chicago Score hosted a seminar titled “The Top Five Accounting Issues That Cause Small Businesses to Fail”. This seminar was presented by myself as Founder of CFO 4 Small Biz, and E. Pete Lewis, of Lewis & Associates Tax Planning Inc. In this blog I will provide an overview of the content of the seminar. I covered the operational accounting issues while Pete covered the tax related issues. Pete’s firm specializes in tax planning strategies.

We defined the top five issues as follows:

  1. Business Formation Issues
  2. Cash Liquidity Issues
  3. Failure to use Financial & Tax Information to Maximize Profits
  4. Pricing and Margin Issues
  5. Tax Issues Often Overlooked

In the first failure Continue reading

Value Pricing

While I was attending the Business Solutions Conference in Illinois and visiting with vendors I heard the term “value pricing”. A vendor, providing bookkeeping service, was providing the service at a fixed price on a monthly basis and calling it “value pricing”. Although I wasn’t calling it “value pricing”, I was offering it through my fixed price services. This got me thinking about value pricing.

Value pricing is providing a specific service at a fixed price for a specific type of client. This allows the business owner to be able to budget for the service. Traditional CPA firms and firms providing outsourced CFO services usually Continue reading

Financial Guidance For The Small Business Owner

The CFO 4 Small Biz™ tag line is “Every Company Needs Financial Guidance ® ”.

Is yours adequate? If so then there is no need to read further. If not, you will be interested in reading further.

“The role of a chief financial officer has changed dramatically in recent years. In many growing businesses, the CFO serves as a partner to the CEO, helping outline strategy and drive the business toward its goals. …the CFO is the partner of the CEO in helping lead the company to meet business goals.”  (INC. Magazine 2/16/10)

Every company needs financial guidance; a Chief Financial Officer (CFO) provides that guidance. Most companies over $30 million will have a fulltime CFO. A small company has the same requirements of a large company; the difference is that the large company has the financial capability to have the resources in-house. Continue reading

Quickbooks Financial Reports – Intuit Statement Writer

A  CNN Money web article published on 4/5/12 states:

“QuickBooks and TurboTax are near monopolies, with a retail market share of more than 90%, according to NPD Group, a market research firm.”

(Click here to read the article titled “How Intuit Rules Your Books”.) Intuit has over 4 million customers using Quickbooks®. Although there are other very good small business software available such as Sage 50 (formerly Peachtree), Quickbooks® is the dominant player. (Thus this article will focus on Quickbooks® and use this term to include editions from Quickbooks Pro to Enterprise.)

Intuit has been very successful with Quickbooks®, as indicated by the size of its market share, due to providing a lot of functionality for a very low price; thus a great value. In my opinion, Quickbooks® primarily services businesses with revenues below $15 million with the majority being below $10 million.

In my prior corporate career (before being a CFO 4 Small Biz TM Consultant), the companies for which I worked utilized much higher level (ERP) software to run the business.  Even using higher level software, there was still a need to use separate financial reporting software because Continue reading

What is a Chartered Global Management Accountant (CGMA)?

To answer the question we first must understand – “What is management accounting.”

The Chartered Institute of Management Accountants (CIMA) answers the question this way – “Management accounting combines accounting, finance and management with the leading edge techniques needed to drive successful businesses.”

Our members are qualified to work across an organization, not just in finance. In addition to strong accounting fundamentals, CIMA teaches strategic business and management skills: Continue reading

Business Turnaround – Budgeting and Forecasting for Success

My first blog on this subject (Business Turnaround) discussed why successful business turnarounds are so difficult. My second blog on this subject (Turnaround – Elements for Success – Action One) discussed action 1 “avoiding cash surprises”. The next blog article (How to Achieve a Successful Business Turnaround) discussed action 2 “using financial information to proactively run the business”. This final blog article in this “Turnaround” series discusses the benefits of using budgeting and forecasting. Continue reading

Business Wisdom Musings

I would like to list some of the business wisdom musings that I have had over the years. I had one manager call them “Mayo-isms” (those in bold). I have had so many that I won’t be able to recall all of them. But here goes:

On Compensation
If you pay peanuts, you will get monkeys.

On Guiding Subordinates
Your job is to make me look like a superstar and mine is to help you.

Continue reading

How to Achieve a Successful Business Turnaround

My first blog on this subject (Business Turnaround) discussed why successful business turnarounds are so difficult. My second blog on this subject (Turnaround – Elements for Success – Action One) discussed avoiding cash surprises. I will discuss the second element of success in this blog; using financial information to proactively run the business.

Too many small businesses only use financial information for what I call statutory accounting. That is accounting information is only used to collect receivables, pay employees, pay vendors, pay taxes, and pay the bank. Financial statements are prepared primarily to keep the banker “happy”.

Financial information is not being used Continue reading