Accurate & Timely
Imagine a professional basketball game without keeping score. Or imagine a game show without a way to determine the winner. In a competitive world, these scenarios do not make any sense. In fact, we might even wonder what the purpose of playing in a basketball game or participating in a game show is without keeping score. Running a business without financial statements is really no different.
Our experience shows that most business owners have learned to not trust their financial statements over time because they are either inaccurate, too late to carry any relevance, or both. The number one priority of a Chief Financial Officer (CFO) is the preparation, analysis, and presentation of the accurate financial statements on time every month.
The three core statements that drive this monthly reporting process are the profit and loss statement, the balance sheet, and the statement of cash flow. There are lots of reasons and issues that cause the financial statements to be inaccurate, so it is no wonder many business owners do not trust them. But for each inaccuracy there is a “best practice” to correct the statements. Our CFO firm is seasoned in these best practices, and they rely heavily on each other should they ever encounter a situation they have not personally solved before.
The accounting staff, under the direction of the CFO, should finalize the prior month’s financials by the 15th or 20th of the following month. Exceptions may occasionally cause slight delays, but these should be rare exceptions. With accurate financial statements in their hands just 15 to 20 days after the completion of the month, business owners and CEOs are empowered to make relevant, impactful, and correct decisions to improve the profitability of their companies.
During our collective CFO careers, we have helped hundreds of companies in almost every industry execute and improve their financial statement processes.