The Cost of Bad Accounting - Business Finance Expert Explains
Last June, I was in Fort Collins, Colorado visiting my cousin. That Saturday morning, we decided to bike one of the beautiful bike trails there. He gave me one of his bikes and he took the other. All was well for the first 5 miles out. But on the way back I was huffing and puffing, even though I’m in good shape. We pulled over and exchanged bikes. In short order, he was huffing and puffing too. When we got home, he surmised that it was a problem with the hydraulic brakes on that bike. He took it for repair, and it turns out the brakes were rubbing, and we were riding the brakes.
Upon hearing that, my business finance consultant mind immediately conjured up the analogy that running a business with poor financial management is like riding with the brakes on. It slows you down and makes it way harder to get to your destination. Operating a business with slack financials and little to no financial analysis is like riding a vehicle blindfolded. The odds of getting where you want to go are slim and the likelihood of crashing is high.
Accounting is the guidance system for your business. The numbers tell you where you’ve been and what changes need to be made. All you need to do is learn a few fundamentals from a good CFO consultant and you’ll be set. Never again will you have angst about your finances. Your decisions will be more accurate.
You’ll minimize taxes and make your estimated payments on time. You’ll know which clients are profitable and which are not. You’ll understand the gross and net margin you need to make your hard work pay off. The chances of getting ripped off will be less.
You’ll have the information you need for lenders’ and investors’ questions at your fingertips. Most importantly, you’ll have full command of your business.
Good bookkeeping and a CFO consultant should remove the brakes that are holding you back. Believe me, a properly run accounting department will do more to accelerate your growth and improve your bottom line than any other department in your company, including sales.
How could that be? Watch the video above.
Why not let me put the right pieces in place for you now and stop riding with the brakes on?
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This is Robert Band, your business finance expert. Would you like the feeling of having great financial management? Then let me put the right pieces in place for you. Remember, one tip could be worth millions and profits today become fortunes tomorrow. So, don’t let them fall through the cracks.