Your company is on an upward trajectory and you are getting busier day by day. But the cash in your hand is not in sync with the success of yours, so what would you do? on top of this you are loosening your purse strings too much and on things that are hardly helping you company to grow. Like accounting, for example. We have dealt with several entrepreneurs. They happen to be salespeople and inventors but not accountants. They realize the significance of cash and have created businesses with an intention to generate cash. At a particular point, however, a business evolves beyond intuition. It requires financial processes and systems in order to flourish. Here are 5 signs indicating that your business might have touched that point.
Tough to get data you require
Majority of startups utilize QuickBooks. It’s an ideal weapon for the companies which have just begun their journey. It’s normally established by a tax accountant to aid him or her prepare tax returns without any issues. The problem happens to be getting good data into QuickBooks to take out meaningful data from it. In the beginning getting the data to operate your business won’t be tough. However, as you evolve you’ll get more transactions and complexity will increase in your accounting. How do you find what is significant for you and what isn’t?
Not having adequate cash
This happens to be the major cause of concern with our new clients.They have a good feel for the growth and sink of their cash balances however, they can’t track cash on a regular basis. They want more predictability and firmness with regard to their cash flow so they can take confident calls. They also require access to capital – so as to absorb the ups and downs.
Adhering to a financial plan is a must
It is common knowledge that the business that indulge in planning performs well. You realize the potential of making a financial plan, but, you have to find time for the same as well. Once it is accomplished, you need to track and gauge performance against it.
You need a financial “sounding board”
It is a good thing to have someone to speak about your business. It could be friends, advisors or mentors who can help you out with valuable inputs. However, at times you have to get into the details about critical things: how much do I pay someone? What should be the price of a new product? What all risks can drastically affect my business? It would be better to have help at hand for all these things.
Want more time to work on your business
Several business owners consume a lot of time working in their business, particularly on their books. You want things in a particular way, but the bookkeeper is unable to get the books where they ought to be. Hence, the owner does not have any options, but to spend good time getting things in order instead of focussing on building the business.
Lastly
If the above-mentioned points ring true to your business, then the time is ripe for hiring a Virtual CFO. He is someone who can aid you with his financial and accounting expertise, knowledge and systems. This is an economical manner to get more time to focus on growth of your business.