Bohemia, NY (PRWEB) February 22, 2014
Lawrence Teicher, founder of CFO Consulting Services and leading Long Island CPA, discusses five ways business owners can keep their finances in check and manage their accounts more efficiently.
According to a February 3rd The Washington Post article titled “Small business advice: How to clean up your finances and keep your company in the black,” managing a business can be both rewarding and stressful. While keeping an eye on their finances might not be an owner’s top priority when first establishing their business, it should become ingrained into their daily routine. The article says this might be difficult at first, but with a few tips, business owners can begin to maintain their finances and clean up their accounts.
Lawrence Teicher, founder of CFO Consulting Services and leading Long Island CPA, discusses five tips to help business owners clean up their financials.
1. Develop a rolling budget. “It’s a new year, meaning it’s time to set that budget and stick to it until circumstances warrant a change,” Teicher says. “Once finalized and approved, a budget should not be changed unless the business’ situation changes and a budget revision is necessary. This will help you stay on track with all expenses and allow you the flexibility to recognize that business is dynamic and always changing.”
2. Examine cash flow. “Cash flow is what keeps all businesses operating,” he says. “Don’t leave this up to the accounting department or bookkeeper alone. Owners should keep an eye on cash flow and properly manage disbursements and collections. Businesses that do not actively monitor cash flow and working capital run the risk of failure.”
3. Monitor expenses and purchase commitments regularly. “Make an effort to devote time each day to review purchase orders to make sure your people are obtaining competitive bids and negotiating favorable terms,” Teicher explains. “This will help owners stay on top of their cash flow and give them a better idea on how costs could be cut in the future.”
4. Separate business and personal finances. “Business owners that blur the lines between business and personal finances often find themselves in financial turmoil,” he says. “It can also raise a red flag with the IRS, leaving you with a large potential tax exposure.”
5. Consult a CPA or part time CFO. “Just because you own a business doesn’t mean you are an expert in finance,” he says. “CPAs, accountants and especially part time CFOs with a strategic orientation can help develop, improve and streamline necessary accounting processes. The right outsourced CFO can improve your business’ ability to compete and succeed. Small business owners should recognize areas in which they are nor experts and obtain advice from those that are.”
By providing part-time CFO services on an as-needed basis, CFO Consulting Services is revolutionizing the delivery of financial services. Now small and mid-sized businesses have access to the financial expertise once available to only large businesses. Founded by CPA and financial expert Lawrence Teicher, CFO Consulting Services follows four main principles: independence, objectivity, competence and confidentiality. These core values have led its clients to achieve lasting success in their businesses.