Your Financial Systems

Author: Larry Chester, President

Have you outgrown them?

You have three financial systems operating in your company. You might not consider them all Financial Systems, but one can’t function without the other:

• Computer hardware
• Financial software
• Internal controls

Computer Hardware –How old is your computer system? Is it cloud based or server based? Companies are comfortable with the structure that they have been using for the past 5 or even 10 years. But consider this:

• Outside threats – Not only hackers, but viruses and worms attack your system daily. Are you protecting yourself?
• Capacity – Do you have the storage and speed to process your work? Or is your staff waiting every time they hit the “enter” key?
• Backup – Will you be protected when your server crashes? It will happen.

Financial Software – How have your company’s needs changed since you installed your current software? You need to evaluate how well suited the software is to not only your current operations, but for next year as well.

• Processing – Does your software allow for the detailed processing of Accounts Receivable and Payable transactions?
• Inventory Control – Can you track incoming and outgoing product? Can you do lot control, or just average cost?
  Does your inventory value report let you can verify what’s on the floor?
• Financial Reporting – Do you know how your company is doing? Can you make changes today to improve your profitability tomorrow? For that, you need detail. Ad hoc custom reports can track orders, customer activity, production results and expenses to make decisions easier.

Internal Controls – as companies grow, their needs change. Have you made changes in your business operational flow to protect your company’s assets?

• Do other people in your company have the authority to make purchases? You might be the only one signing checks, but if someone has a credit card, it’s like they’re signing checks every time they buy something.
• Is the person who enters invoices also writing checks and reconciling the checkbook? This is often accepted when companies are small. But as you grew larger, did you divide up those activities?
• How do you protect your inventory? Are you protecting it from improperly shipped orders? Is it properly rotated to keep it fresh?
• Are you collecting your receivables? Why are you still carrying invoices that are 6 months to a year old?

CFO Simplified can help you keep all of your Financial Systems up to date and effective.

CFO Simplified is your strategic financial partner to drive growth, profitability and value into your business. For more information and examples of how CFO Simplified has helped clients achieve these objectives, please review the services offered and case studies available on our website. Then contact us so we can help you reach your goals.