Small business owners need to pay special attention to their cash on hand. Your financial team will help you with the cash management of your business. Cash management includes monitoring and reducing the length of accounts receivables, increasing collection rates and increasing the cash on hand for companies.
This becomes increasingly important for small business owners since they have less credit opportunities and may have significant upfront costs. Managing your accounts receivables becomes critical to the success of your business. Most companies strive for a 30 days or less open receivable and there are a number of ways to reduce your waiting period. Automated payments, accepting credit cards or electronic payments. Staying on top of your aging receivables allows the business owner to have a clear understanding of the bottle necks of the business.
Why do I need a CFO?
You didn’t start your business or become the head of an organization because you are a financial expert. You are there to grow and succeed. The accounting, bookkeeping and financial aspects of your business are important to how you run your company, but it is time consuming and if not done properly, can lead to more headaches down the road.
Keeping track of your bookkeeping and your financial statements is time consuming and difficult to manage. But most frustrating is understanding and interpreting your financial picture from reports. CFOs are responsible for timely and accurate presentations and financial reports in order to capitalize on your growth.