According to the Wall Street Journal, 60-80% of business owners don’t know what their financial statements are telling them. I know what you’re thinking. “That’s not me.”
It goes without saying that everything that happens in your company, no matter how small, shows up in your financials. Whether it is a piece of equipment that needs repair before the job could start running, or the clerk that has to spend 2 hours a week sorting orders before they are ready to go to the warehouse for shipment, or the warranty callback on the installation that can’t get billed. These all affect your company’s cost of goods sold. They are all elements of how efficiently your company operates.
Every executive is knowledgeable about how his or her company works. You intimately know the workflow that gets orders into the company, and product going out to the customer. But as your little company grew, you became divorced from the day to day operations. As you got separated from the clerk processing the order and the dock worker shipping the order by one or two layers of management, you no longer saw how smoothly (or how inefficiently) your once small, clean operation did what it needed to do. You have more strategic matters to address.
It’s easy to say, “I have skilled managers who watch out for hiccups in our operation,” but do you really know how those hiccups are affecting your bottom line? A skilled CFO can take your financial statements and slice and dice the numbers, dig down into the details, separate a momentary variance from those things that are a continual drag on your operation’s profitability. It’s all there in the financials. You just need someone with the skill and experience to identify it.
You can walk the production floor, and look for elements that aren’t going right, but do you understand the financial impact of the flaws and missteps that you are seeing? Continuous improvement isn’t just a hot button; it is the key to improving your operations and your bottom line. It’s important to focus on those items that have the greatest impact first. But how do you know what items should be tackled first?
The skilled executives at CFO Simplified are ready to show you where your business can be tightened up so that more of your hard-earned money drops right to the bottom line, and so that you get every dollar from your company that you deserve.
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