FINANCING & BUDGETING • November 13, 2015
2 minutes Read
Simple Advice from BodeTree CEO and Co-Founder, Chris Myers
Over 90% of small business owners don’t have accurate, dependable, and up-to-date financials. There used to be a lot of excuses for this: organizing your numbers was time consuming, complex, and expensive. Small business owners and entrepreneurs were faced with just two choices: hire an accountant or simply ignore the financial side of your business (until absolutely necessary). Fortunately, this is no longer the case. These four simple tips can help entrepreneurs get organized and manage their business more effectively than ever before.
1. Take advantage of today’s technology
Today, small businesses have more than two choices—instead of going full bore with an accountant or heavy-duty software, there are a number of “third path” options that rely on easy-to-use technology. For example, CAN Capital has partnered with BodeTree, due to the quality of the process and offering. BodeTree has simplified the entire process by connecting directly to bank and credit card accounts—providing real-time insights into business financials, like cash flow and valuation.
2. Stay organized by setting aside a regular time to review your numbers every week
Too many small business owners think about their finances only when it’s time to pay taxes. The problem is that important decision points occur organically, not just around tax season. One solution is to set aside time each and every week to review your finances. It doesn’t matter if you’re simply checking your current cash flow situation or reviewing your performance relative to a peer group. The important thing is that you’re making financial management part of your routine. While it may seem tedious at first, the behavior will pay off in the long run.
3. Use the FOGS framework when evaluating decisions
The vast majority of businesses struggle to make data-driven decisions. Applying a framework to big questions helps break down and simplify them so problems are easier to digest and overcome.
The FOGS framework can help change that. It stands for Finance, Operations, Goals, and Strategy.
When making a decision, think about the financial impact, how it will affect your operations, whether it furthers your goals, and if it aligns to your strategy. This framework is at the core of every successful business, whether they know it or not.
4. Finally, never lose sight of the big picture
Every small business owner is looking to maximize value. While the definition of value can differ from person to person, more often than not it’s the financial value of the business that entrepreneurs really care about.
Financial value is the culmination of everything that is going on in a business: where it has been in the past, where it stands today, and where it’s going in the future. Keeping an eye on the big picture of your business can help you stay motivated and engaged in managing your finances.
Here’s the thing: while finance and accounting are boring, their applications don’t have to be. Today’s small business owners can leverage technology to handle the grunt work of organizing their data so that they can focus their time on using that information in their business. Organized finances will lead to better decisions, better communication, and better results for your small business.
To start organizing and managing your small business’s finances, please visit www.bodetree.com to register.
Photo Credit: BodeTree.com