You don’t always need a full-time Chief Financial Officer, which is exactly why you need Right Column.
A Plan For Action
Having a specific plan in place will dramatically increase your chances of hitting your goals. We’re sure you’ve heard the experts say that a thousand times, but what does it really mean for you and for your company? Is it something that you put together on a legal pad or on a spreadsheet during lunch?
All effective Business Planning starts with a budget. We base our decisions off of the financial statements, the Income Statement and Balance Sheet, so we create budgets for both. This will give us not only projected income/expenses, but a budgeted cash position as well as Accounts Receivable and Accounts Payable. It is important to budget for all of these areas, as they all will have an impact on cash. If you don’t hit your sales goals, your cash will be lower. If you don’t collect on your invoices to your customers, cash will be lower. If you don’t pay your bills on time, cash will be higher. All of these areas are important to know and vastly impact the business, so we want to make sure you budget for all of them.
As a business owner, it’s tough to make future decisions without insight. When should you hire? Can you make that large capital expenditure in cash, or will you need financing? What will the implementation of a line of credit mean to your organization?
When you continually update your budget with new information, it now becomes a forecast. A forecast stays up to date with what is going on within your company and therefore is much more useful than a budget. Being able to update the forecast with new information as time marches forward gives you a much clearer picture of the state of your company at any given point. By maintaining a forecast, we can easily model and test your decisions in a risk-free environment.
Feeling unsure about a financial decision or status? We are here to help with monthly meetings to go over revisions in sales activity, expected expenses, any adjusted goals or obstacles as well as any other changing information. We will then adjust the forecast to reflect the updated information and review the results. This allows you the opportunity to test any decisions as well as for us to update you on what we believe is either going to happen, or needs to happen, giving you peace of mind.