Managers at your business are working hard to make all of the details work together and fall into place, from marketing to logistics. But financial people are the ones that really see the total picture. In most firms that I have seen, management does not ask enough questions of these number crunchers, which can often make important observations on both micro and macro scales. So does your current staff act like business partners or unseen analysts? Are they motivated to want your business to succeed, or do they want to just get the work done and keep out of the way? Here are a few notes about getting the most out of the people that may know the most about your business:
Get Advice From Knowledgeable Financial Pros
Many new and fast-growing firms have promoted a “Miracle Receptionist” (see previous blog entry) into the position of “Controller” or even “CFO”. Oftentimes this is a perk in lieu of a serious salary increase. But untrained wanna-be’s of this type consider their work as done if they can somehow simply get the numbers done on time. And the numbers are frequently of dubious accuracy. Lower-end accounting types are great for data-entry and keeping things up-to-date, but they are untrained and unable to really interpret what is happening. Important findings lie unfound in the numbers. These important observations are, however, perhaps the greatest value-add of financial pros. This top-end work will certainly cost something, but the advice is usually well-worth it.
Consider an Interim CFO or an Outside Financial Consultant
Consider an interim CFO or an outside financial consultant perhaps one day per week or month, and talk with them about the most important aspects of your business, and where you suspect problems or opportunities. Perhaps sales goals on specific new products, or by sales rep should be become important metrics? Or misbehaving expense lines? Or unclear relationships? For example, do revenues really increase after marketing efforts, such as your annual industry convention, or perhaps a better return is gained from other parts of the marketing mix such as digital display ads? This information is probably in your accounting system, but needs to be properly analyzed by someone knowledgeable about your company, your market, and both accounting and finance.
Special Periodic Reports with Relevant Metrics
Beyond this, are there customized reports that you’d like on a daily, weekly, monthly or quarterly basis? Communicate these thoughts and concerns to your finance expert and after some back-and-forth the result will be more relevant reports and information to manage your business more effectively. It’s best to set this up as a routing as soon as possible so that you can compare the numbers over time.
Motivation
Finally, make sure your financial counsel is included in meetings, memos and company events so that he or she feels like part of the team. Extra benefits will emerge from this as everyone works better together and shares the same concerns.
Business owners sometimes need the views and opinions of other experts in making decisions at all levels, and your CFO, interim CFO, or outside financial consultant should be central in providing the numbers, support and direction in making this happen.
