If you are like most people, you are about to embark on your goals and New Year’s resolutions for 2022. However, you might want to ask yourself these questions about your business to best inform your choices and improve your cash flow and profitability.
Top 5 Questions to Ask Yourself
1. Who Handles Your Accounting & Financial Processes? If you are like many of your fellow SMB owners, you might be taking on some or all of these responsibilities in order to save some money. But you need to ask yourself — for every hour I spend on doing financial back-office work, how much revenue could you be generating instead?
2. Do You Have A Budget / Forecasting Process? If you don’t have a financial advisor or Fractional CFO to assist in this process, it’s not too late to start. This will help you guide your performance in 2022.
3. What is Your General Ledger / ERP Package? You don’t need to spend several thousand dollars on a platform, but something like QuickBooks or Xero might not be the right choice for your operations.
4. Do You Track Your Key Performance Indicators (KPIs)? You don’t need to track all financial statistics, but you should have a dashboard or process in place for the key business metrics that will best assess your progress with the business. Without KPIs in place it is hard to focus on what is important and how you are doing as compared to your competitors and peers.
5. What Is Your Why? As time evolves, the reason why you get up in the morning or what gets your motor racing might change. It is important to check yourself and make sure that the passion you have for your business is still there and your desire to be the best in your industry is burning furiously.
Take-away: Taking time to reflect on these questions is a useful exercise, at any point in the year. AcceleratingCFO is here for you. Contact Brian or Scott at email@example.com for a free diagnostic or with any questions that may come up as a result of this exercise.
Co-founders & Managing Partners