10 SUREFIRE WAYS TO IMPROVE YOUR COMPANY'S FINANCES in 2017

 

1. Accurate books.

  • Use a cloud accounting solution such as QuickBooks Online or Xero to automate your account process and access your books from anywhere.
  • Hire an amazing bookkeeper or controller to maintain your books.
  • Establish internal controls to mitigate potential risks.

2. an efficient billing and collections process.

  • Send invoices electronically. Double-check that the right contact is receiving them.
  • Accept payments online to improve cash flow.
  • Approve and pay your bills online
  • Have a weekly process in place for reminding customers when invoices are past due.

3. Access to financial reports.

  • Make sure you have access to a company dashboard that you can review weekly.
  • Make sure revenue is split up into meaningful categories.
  • Organize direct cost under relevant revenue categories to keep track of gross profit margin.
  • Understand your gross profit margin on all products and services.

4. A dynamic sales forecast.

  • Develop sales unit projections to build your sales forecast model.
  • Use recent sales data along with other data to predict future sales.
  • Use the sales forecast to help guide decisions around your sales process.

5. A cash flow forecast.

  • If you're tight on cash, develop a weekly cash flow forecast model to identify the kinds of changes that will improve your cash flow position.
  • If your cash position is healthy, you will still need a cash flow forecast to stay ahead of potential future cash flow problems.

6. Key performance indicators.

  • Be able to answer the questions: How are we doing? How profitable are are our services or products? Which aspects of our business do I need to be most focused on?
  • Establish relevant KPIs such as gross profit margin, days sales outstanding, aging accounts receivable, quick ratio, revenue growth rate, and review them weekly.

7. Strategic goals and initiatives.

  • Identify your main strategic goals and initiatives.
  • Make them measurable and specific.
  • Review your KPIs (and establish new KPIs) to help identify successes or barriers to meeting your goals and initiatives

8. an understanding of its sales cycle.

  • Map out your sales process.
  • Track how long it takes you to make a sale.
  • Identify areas of improvement.
  • Implement changes to your process that make your sales cycle more efficient.

9. A way to measure customer satisfaction.

  • Make sure you're getting regular feedback from your customers.
  • Use customer feedback to refine the way you speak prospects' pain points.
  • Use customer feedback to enhance your services or products and improve customer retention.

10. Implementation of cost efficiencies.

  • Critically evaluate your costs. On a scale of 1 to 5 (5 being the highest), how much value are you getting from services or products provided by your vendor? Look into alternative options for those your scored 3 or below.
  • Embrace technological changes that result in higher cost efficiencies (lower overall costs) or higher revenue potential.
  • If departments have been overspending, establish budgets as an internal cost control method.
 

What if I told you I can fix your company's financial problems?

I'm Joe Hamgeri, a financial consultant and business coach. I help businesses and entrepreneurs get clarity on their finances, get them operating more efficiently, and help them reduce costs. Would you like the same for your business?

 
 

Let's chat for 15-30 minutes about the problems you're experiencing AND get you the specific next steps you need to take to fix them. It's free, so why not?

 
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