Creating a Small Business Financial Plan: 5 Tips for 2020
The new year is closer than you think. There are a scant few weeks left until the 2010s decade ends. Next year is the perfect time to start the business that you have been picturing. For that, you need a good plan. Have you perfected your business plan? You don’t have much time to get […]
A CFO’s Daily Routine
A Chief Financial Officer needs a strong work ethic. They have to juggle multiple duties to keep a business afloat, regardless of the size. In addition, they need to serve as an ethical compass to ensure that no one is breaking the law. A CFO can work for a small startup or for a mid-to-large […]
What Is The Average Hourly Rate For A Virtual Or Outsourced CFO?
Businesses want a competent Chief Financial Officer, called a CFO for short. You want someone who can handle finances and oversee your financial side of the business, as well as persuade potential investors to inject capital into your cash flow in exchange for a reasonable percentage of equity. In some cases, the CFO may add […]
Difference Between Top Line, Bottom Line, and Cash Flow
I recently came across this old saying, “The top line is vanity; the bottom line is sanity; but cash flow is a reality,” and thought – wow – what wise words for entrepreneurs to live by and remember. We may get excited about seeing the numbers related to our first sale, but then we have […]
The Entrepreneur’s Salary and How It’s Affecting Your Numbers
A lot of business owners end up shortchanging themselves and their business by failing to set themselves a market-rate salary. They either overpay themselves by taking too much revenue out of their operation or underpay themselves by not setting aside enough income, thereby distorting their numbers. Either way, this ends up harming the business. The […]
3 Steps to Organizing Your Chart of Accounts
If you don’t have good bones, everything collapses. Huh? I’m talking about your chart of accounts. What is chart of accounts The chart of accounts is the skeleton of your agency and can provide either very meaningful numbers or numbers that really don’t tell you anything. For those of you scratching your heads, a chart […]
3 Steps to Clean up Your Profit and Loss Statement
It takes me about 30 seconds to judge the quality of accounting work being done by a company by looking at their latest financial reports. What you should know about profit and loss statement Just a few weeks ago, I was chatting with a buddy of mine who runs a $2.3 million business and wasn’t […]
How a CEO Grew his Revenue 45000% by Digging Deep into his Key Metrics
Three years ago my buddy with an already successful company wanted to start a new e-commerce business. He shared the thought in our CEO group but it wasn’t well received. After all, at $400 in monthly revenue, the new idea appeared to be little more than a distraction from his “real” company. Fast forward to […]
What to Expect from A Small Business Bookkeeper
A friend running an agency reached out to me and was beating herself up for missing a 40% spending increase in one of her department. Like many agencies, she had a one-person bookkeeping team who she relied on to keep her books, pay the bills, and she wasn’t quite sure what her expectations should be. […]
How to Start a Metrics-Driven Agency
My buddy who owns a digital agency wanted to jump start a metrics-driven culture but wasn’t sure where to start. We sat down over some good Scotch and cigars to chat about it. Here are the 9 metrics that I’ve suggested as an easy place to start and covers all 3 aspects of an agency infrastructure. […]
