The Power of Clear, Timely, Accurate Financial Statements
Accurate financial data is essential for many reasons, including:
- The ability to budget to keep the operation running smoothly
- The flexibility to take advantage of growth opportunities
- The ability to strategically build toward longer-term growth goals
- The knowledge to make solid decisions about what is and is not profitable
However, accurate data is not enough. Most of the decision-makers in a company will not be accountants or financial professionals. Simply providing decision-makers access to data will not empower them to make data-driven decisions. In fact, it may do more harm than good as time and energy is diverted to analysis of the financial information and misinterpretations or oversights are likely.
A capable, effective CFO doesn’t just implement processes for gathering that data and ensuring that it is accurate, but also creates or adopts a system for regularly translating that data into clear, useable information and distributing it to decision-makers.
Bring Financial Management and Operations Together
For those members of management who are not financial professionals, the financial management aspects of the business may seem tedious and even a bit mysterious. That’s a recipe for failure. After all, operating capital is a necessary ingredient for any new initiative or expansion your company might be considering. Likewise, profitability information is a key data point–perhaps the single most important data point–in determining whether a product or service line should be maintained, discontinued, revamped or increased.
That is why it is critical that your CFO does not just crunch numbers and create reports from on high, but finds a way to:
Ensure that decision-makers understand the relevance of financial data and how it impacts their options and decisions
Communicate financial information to those decision-makers in a way that is both clear and predictable
Establish and enforce simple, repeatable processes for those reporting financial data
Your CFO Solutions Can Help
If you do not have a strong financial manager driving financial processes and application and working to unite the decision-makers in a vision built on realistic financial analysis, you need help to create the strongest, most profitable version of your company.
Your CFO Solutions offers financial expertise much like you would expect from a large accounting firm, but on a part-time or short-term basis. We can provide the financial leadership required to take your company to the next level on cost-effective terms that are tailored to the unique needs of your business. Contact us today to learn more about how we can help you create and implement the financial processes that will provide the foundation for growing your business.