Pressures & Boiling Points
The Smoke Signal
Are we going to make payroll?
We are behind on invoicing and collections (AKA show me the money)
We never get financials on time ( Internal Process/Weakness)
We have so much software and I am not sure who uses most of it or if it gets used at all?
Why Processes for Profit?
The Founders are brilliant - They are visionaries and not operations
The internal processes and controls can not be identified much less documented
Efficiency is key to Profitability
The foundation of the business was an afterthought
The infrastructure is non-existent
The Growing Pains
Finally calling a CPA, not just books for tax but with a focus on businesses and cash flow
We saw the smoke signals
First Duty - Financial Reset. Build the foundation with an orderly chart of accounts
Implement changes in internal processes and controls to ensure they repeat
Yes it takes discipline and time
No, A CPA is not all you need, but you need one to get started
Look back, gain perspective; Look Forward and make decisions.
Understand where you are and where your business is headed
Efficient Repeatable processes build profitability
Begin to have cash flow clarity
Know what is coming in the bank
Learn how to control what is leaving (hint: Free cash flow increases and so does peace of mind)
Discipline is the Queen of the reset and Cash is still King
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