Comments on: Just How Financially Healthy is Your Small Business, Anyway? http://smallbiztrends.com/2009/06/financially-healthy-small-business.html Exploring the trends driving small business Fri, 10 Feb 2012 04:39:28 +0000 hourly 1 http://wordpress.org/?v= By: Robert http://smallbiztrends.com/2009/06/financially-healthy-small-business.html#comment-663878 Robert Mon, 20 Jul 2009 10:59:37 +0000 http://smallbiztrends.com/?p=14907#comment-663878 Accounting and financial management have often been regarded as the most complex aspects of managing a business. The numbers are usually big, the formulae confusing and there are so many regulations. It is fine for the Director of Finance/CFO and his/her team but what about the other stakeholders, especially average investors and the managers actually running the show. How can they ensure that their investment is safe or their performance is in line with organizational goals? Accounting and financial management have often been regarded as the most complex aspects of managing a business. The numbers are usually big, the formulae confusing and there are so many regulations. It is fine for the Director of Finance/CFO and his/her team but what about the other stakeholders, especially average investors and the managers actually running the show. How can they ensure that their investment is safe or their performance is in line with organizational goals?

]]> By: Fintel.us http://smallbiztrends.com/2009/06/financially-healthy-small-business.html#comment-663748 Fintel.us Sat, 18 Jul 2009 07:26:04 +0000 http://smallbiztrends.com/?p=14907#comment-663748 I got a very good tool for Industry Metrics. Whether you are researching the industry of your client or investment target, or investigating best practices of financial management among your company's industry peers, Fintel.us Industry Metrics (FIM) reports are for you. They offer unique and powerful insights into the financial profiles and performance of privately-held companies operating across almost all industries. I got a very good tool for Industry Metrics. Whether you are researching the industry of your client or investment target, or investigating best practices of financial management among your company’s industry peers, Fintel.us Industry Metrics (FIM) reports are for you. They offer unique and powerful insights into the financial profiles and performance of privately-held companies operating across almost all industries.

]]> By: Anna Masker http://smallbiztrends.com/2009/06/financially-healthy-small-business.html#comment-661582 Anna Masker Tue, 23 Jun 2009 14:28:51 +0000 http://smallbiztrends.com/?p=14907#comment-661582 Anita, While I agree with you that cash is king, I would argue the quality of cash is king. We often find that when we start working with our clients they have relied on cash flow from loans and lines of credit to keep operations going. For many, they monitored only their bank account and sales number. When the easy money that covered up so many other issues evaporated-- they finally see that their core business operations weren't generating cash and realize they are in a pinch. The tool above helps identify some of these issues. Ideally, a bulk of your cash flow should be from your operations, not from your personal bank accounts or your lenders, unless you are in a very capital-intensive business or growing rapidly. If you aren't a "numbers" person it probably would be beneficial to work with your accountant or business advisor or CFO to do a reality check on your financials. It could provide the course correction you need to avoid future financial disasters. www.profitpointconsulting.com Anita,
While I agree with you that cash is king, I would argue the quality of cash is king. We often find that when we start working with our clients they have relied on cash flow from loans and lines of credit to keep operations going. For many, they monitored only their bank account and sales number. When the easy money that covered up so many other issues evaporated– they finally see that their core business operations weren’t generating cash and realize they are in a pinch. The tool above helps identify some of these issues. Ideally, a bulk of your cash flow should be from your operations, not from your personal bank accounts or your lenders, unless you are in a very capital-intensive business or growing rapidly. If you aren’t a “numbers” person it probably would be beneficial to work with your accountant or business advisor or CFO to do a reality check on your financials. It could provide the course correction you need to avoid future financial disasters.

http://www.profitpointconsulting.com

]]> By: Why Knowing the Financial Health of Your Business Matters | scHammond Advisors http://smallbiztrends.com/2009/06/financially-healthy-small-business.html#comment-661489 Why Knowing the Financial Health of Your Business Matters | scHammond Advisors Mon, 22 Jun 2009 13:27:57 +0000 http://smallbiztrends.com/?p=14907#comment-661489 [...] Anita Campbell’s June 20th post at Small Business Trends for a discussion as to why this is important to [...] [...] Anita Campbell’s June 20th post at Small Business Trends for a discussion as to why this is important to [...]

]]> By: Bianca Aquino http://smallbiztrends.com/2009/06/financially-healthy-small-business.html#comment-661472 Bianca Aquino Mon, 22 Jun 2009 08:08:09 +0000 http://smallbiztrends.com/?p=14907#comment-661472 I've read this at openforum. Tried the tool and it's cool. We just always have to remember that "Cash is King!" I’ve read this at openforum. Tried the tool and it’s cool.

We just always have to remember that “Cash is King!”

]]> By: Susan Hammond http://smallbiztrends.com/2009/06/financially-healthy-small-business.html#comment-661431 Susan Hammond Sun, 21 Jun 2009 16:59:07 +0000 http://smallbiztrends.com/?p=14907#comment-661431 Thank you for this post and educating business owners on the need to be financially intelligent. Dashboards or flash reports are a good way to stay on top of a company's financial information. Susan Hammond www.schammond.com Thank you for this post and educating business owners on the need to be financially intelligent. Dashboards or flash reports are a good way to stay on top of a company’s financial information.
Susan Hammond
http://www.schammond.com

]]> By: Ted Hurlbut http://smallbiztrends.com/2009/06/financially-healthy-small-business.html#comment-661420 Ted Hurlbut Sun, 21 Jun 2009 13:00:11 +0000 http://smallbiztrends.com/?p=14907#comment-661420 From the small retail owners that I frequently consult with, I agree that a more thorough knowledge of financial statements and financial ratios would put many on a much more solid footing. If nothing else, maintaing a larger cash cushion at all times would provide much greater liquidity to get through tough times like we're in now. From the small retail owners that I frequently consult with, I agree that a more thorough knowledge of financial statements and financial ratios would put many on a much more solid footing. If nothing else, maintaing a larger cash cushion at all times would provide much greater liquidity to get through tough times like we’re in now.

]]> By: Martin Lindeskog http://smallbiztrends.com/2009/06/financially-healthy-small-business.html#comment-661401 Martin Lindeskog Sun, 21 Jun 2009 07:15:19 +0000 http://smallbiztrends.com/?p=14907#comment-661401 Anita, Jeff Cornwall has done a great job with the The Small Business Threat Index. We discussed that "cash is king" (cash flow and the difference between outgoing and incoming invoices) over at Open Forum. Would you say that factoring could be one of the solutions? As I said before, I think you should foster a dialogue between the sales people and the purchasers regarding the status of the terms of payment. Then have a talk together with finance department you could easy see if you have a mismatch between outgoing and ingoing invoices. Anita,

Jeff Cornwall has done a great job with the The Small Business Threat Index. We discussed that “cash is king” (cash flow and the difference between outgoing and incoming invoices) over at Open Forum.

Would you say that factoring could be one of the solutions? As I said before, I think you should foster a dialogue between the sales people and the purchasers regarding the status of the terms of payment. Then have a talk together with finance department you could easy see if you have a mismatch between outgoing and ingoing invoices.

]]> By: Jennifer Rai http://smallbiztrends.com/2009/06/financially-healthy-small-business.html#comment-661392 Jennifer Rai Sun, 21 Jun 2009 03:03:09 +0000 http://smallbiztrends.com/?p=14907#comment-661392 Thank you for the reminder as we consider hiring more Virtual Assistants. Couldn't agree more with considering the "big picture" health of the business. This post is very well written, thank you. Thank you for the reminder as we consider hiring more Virtual Assistants. Couldn’t agree more with considering the “big picture” health of the business. This post is very well written, thank you.

]]> By: Your Firm’s Financial Health — Wil’s Way http://smallbiztrends.com/2009/06/financially-healthy-small-business.html#comment-661384 Your Firm’s Financial Health — Wil’s Way Sat, 20 Jun 2009 22:59:14 +0000 http://smallbiztrends.com/?p=14907#comment-661384 [...] Campbell, over at Small Business Trends, posted some very useful advice about taking the financial temperature of your small business. But managing your business for [...] [...] Campbell, over at Small Business Trends, posted some very useful advice about taking the financial temperature of your small business. But managing your business for [...]

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