How Fiscally Fit is your Company?
How can you determine if your company is financially healthy? As CEO, what questions should you ask to make sure that your business is fiscally fit and achieving its best financial performance? David W. Kramer (linkedin.com/in/davidwkramer), an experienced CFO and the owner of Outsource CFO Services, has prepared the following checklist based on his work with numerous technology and other growth companies.
The 10 questions that you as CEO should be asking.
- Do I get timely financials based on generally accepted accounting principles (GAAP)?
- Is our cash flow adequate for our business strategy, and can we shorten our cash cycle?
- If we need financing, do we know the sources, and do we have projections for their use?
- Can our net income be increased by improving pricing, costs, or operating burn rate?
- What are the gross margins of our product lines, and which is most easily increased?
- Do we measure the business monthly by cash flow, profitability, operational indicators?
- Do our financial control systems prevent fraud?
- Does my budget for this year match the business strategy?
- Do I have a path to my exit that’s supported by next year’s financial plan?
- Are our financial records sufficient for an audit, when the time comes?
If you’ve answered “no” to any of the above questions, then you should refocus your management team or seek the assistance of a financial expert to help improve your company’s fiscal fitness.
Do you have additional questions or comments? Please let us know or contact Dave Kramer directly (linkedin.com/in/davidwkramer).