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?