How to improve the revenue & profit in your business. Free webinar June 25th. Click here to register.
Imagine spending two weeks in Europe. Now imagine being at ease, knowing that your business is running smoothly in your absence.
Businesses continue to face unprecedented challenges in our post-pandemic world. The aftermath of this trying time is filled with businesses that, although able to survive, continue to struggle with issues surrounding technology, rising prices, and inventory, to name a few. However, business owners need not face these difficult issues alone. To that end, we’ve compiled the top three post-pandemic challenges faced by businesses today and how a CFO can help overcome them.
While understanding revenue, expenses, and profit is crucial for any business owner, cash flow is an equally important metric in truly understanding a business’s financial health. Cash flow, representing the movement of money both in to and out of a business bank account, can be positive or negative, and will fluctuate as the business shifts and expands. A positive cash flow is just as it sounds—more money is coming into the account than leaving it. A negative cash flow, in contrast, means the exact opposite—more money is leaving the account than coming in.
It’s fairly apparent to most business owners that we are no longer in an economy where we can fly by the seat of our pants. The days of coasting are over (but really, never should have begun in the first place). There is simply too much volatility in the economy today, forcing business owners to take a new approach. Yet, financial uncertainty and doubt plague many of them.
We talked last month about the traditional functions of a Chief Financial Officer (CFO); namely, tracking revenue, profit, and cash flow, analyzing financial strengths and weaknesses, and proposing corrective actions. These functions allow the CEO to better understand how to increase revenue, decrease costs, and become more profitable overall.
We talked last month about the traditional functions of a Chief Financial Officer (CFO); namely, tracking revenue, profit, and cash flow, analyzing financial strengths and weaknesses, and proposing corrective actions. These functions allow the CEO to better understand how to increase revenue, decrease costs, and become more profitable overall.
Many people have a fairly good understanding of the traditional functions of a CFO. And those valuable functions remain the same whether we’re talking about the CFO of a Fortune 500 company or the CFO of a small business. Essentially, CFOs (1) track revenue, profit, and cash flow, (2) analyze financial strengths and weaknesses, and (3) propose corrective actions.
Understanding the right tools for the right job is key here. Take accounting for example. Would you use a CRM to manage your books? I would hope not. In the case of automation, this is where specialized accounting automation software
Budgeting is more important than ever. Grab tips to master budgeting for personal & business goals. The pros at Agile Planners can help at agileplanners.com.
Budgeting is more important than ever. Grab tips to master budgeting for personal & business goals. The pros at Agile Planners can help at agileplanners.com.
