One of the most important points to establish with new, or even existing customers, is a clear understanding and expectation of price and payment terms. It is critical for a small business owner to be confident when discussing price and payment terms.
Today is officially the first day of summer, which also means it is the longest day of the year. We will have approximately 15 hours of daylight. What are you going to do today to make sure you get the most out of your day?
Working with a lot of small businesses we have a good understanding how they handle the accounting and finance functions within their business. They have limited resources which makes most of the invoicing, bill paying, bank reconciliations, cash handling, and payroll processing handled by one, or maybe two people at most.
As a 30 year veteran in the commercial finance business, I‘ve been a victim of fraud numerous times. Some of the perpetrators were intent on cheating from the start. In most cases, however, circumstances put people under heavy pressure and, in desperation, they resorted to fraud.
Focusing on high value priorities, not firefighting, will free you from the mundane, and maximize your value.
One of the things I we see quite frequently with small business owners — particularly those that have experienced slow but steady growth — is over-involvement in non-value adding activities — or at least non-value MAXIMIZING activities.
Why do you fix a leaky faucet at home? Because for most of us we realize it’s money down the drain.
The same goes for a business, but unlike the constant dripping sound we hear at home, most business owners are not aware of their cash-flow leaks that can be costing thousands of dollars.
Often as CFO consultants we come upon business situations that just don’t add up. We look at the mess someone got himself or herself into and we just shake our heads in disbelief that they didn’t take time to fully evaluate a project based on proper financial considerations.
If you’re not taking advantage of vendor cash discounts you may be passing up significant costs savings opportunities. At first glance, cash discounts look like small insignificant amounts, but when you calculate the effective annual interest rate, these can be eye popping numbers.
Join Us on St. Patrick’s Day!
St. Patrick’s Day is this Friday- who needs a better excuse to get out of the office and have some fun? There is no better way to celebrate than with great music and green beer.
Come join us at the Hamlin Pub in Shelby Township with entertainment from the Jukebox Junkies- Michigan’s Premiere acoustic party band.
As contract CFOs, we often meet business owners who view accounting as just another cost of doing business – a non-revenue generating function necessary for compliance and paying taxes. What they fail to realize is the real strategic value in learning the “story behind the numbers,” and it does not have to be a mystery novel.