Top 10 Financial Wellness Tips
A CFO’s Health Check-Up for Your Business
Recently our company President, Dominick Bencivenga, addressed Global Business Leaders at a Gravitas Impact Forum on vital aspects of running a financially sound business. With the current disruption to our business climate, it’s more important than ever to maintain focus on the fundamentals so that we are prepared when the unexpected occurs. With this in mind, The A Team has devised the following “business health check-up” list:
1. Do you have the right team in place?
Proper accounting requires a team of players with clearly defined roles: CFO, Controller, Staff Accountants. Is your team simply “counting the beans” or is it adding value via informed data, metrics and a deep understanding of your business and the industry you serve?
2. Do you have KPI’s?
Do you have Key Performance Indictors that support the goals of your business in a one-page snapshot? Do you receive them in a timely manner each month?
3. Do your KPI’s support your cash position daily/weekly?
Do you know the difference between your bank balance and your bank register balance? Do you know how much cash on hand you need in order to cover 6 months of expenses? Are you holding enough cash to safely make it through tough times?
4. Do you receive monthly P&L Reports within 20 days of the end of the month?
Effective strategic planning and forecasting requires timely and accurate monthly reports against budget.
5. Is your Risk Management current?
Have you recently reviewed your policies to be sure that your business is insured at the proper levels, reflecting both your current business needs and the general business climate?
6. Do you have sound Corporate Records?
Do you know where your corporate formation documents are located? When did you last review or update your corporate kit?
7. What are your Internal Controls?
How have you protected your business against financial issues, omissions or phishing scams? Do you have internal approval processes at appropriate levels to avoid any unnecessary financial risks?
8. Is your Company’s Budget regularly reconciled by department?
Do you have an updated company budget and does it dig down to an appropriate departmental level? Is your budget updated monthly into a realistic forecast?
9. Have you done a Nexus Review?
Do you know your compliance vulnerabilities? Are you aware of all states in which you may be obligated to register your business? The rules have changed considerably over the last few years.
10. If applicable, how often do you update Inventory values in your financial report?
When was your inventory last counted to ensure it matches your balance sheet?
As a small business, The A Team understands first-hand the day-to-day management challenges and unforeseen issues that your business may face. We have accounting professionals who can provide assistance on improving and maintaining your company’s financial health, as well as accounting technology professionals who can suggest and implement appropriate systems that will save time, minimize errors and free up resources for what matters most – running your business!