Everything about your finances can fluctuate, especially in turbulent or uncertain times. Whether it’s a job loss, recall, investment blunder, or even a pandemic, your finances will take a new direction, and that’s just a part of life. No matter what happens to your business or to you personally, one thing that you can do to improve the health of your finances is to take control. Sometimes new business, a change in relationships, or a busy schedule can contribute to the loss of control of your finances, and you may not even realize it until something happens that grabs your attention and pulls you back in. Here are a few tips to getting control of your finances so that you don’t have to worry about your, your family’s, or your company’s future.
Stop winging it
Maybe that approach has paid off in your business endeavors, but it’s too dangerous to risk your company’s money by being nonchalant, apathetic, or detached regarding the performance of your finances. Making decisions on the fly and always relying on your gut or an in-the-moment feeling is an easy way to lose control. Get back to strategy and planning initiatives and detail where you want your company to go and what action items you need to employ to get there. If you’re normally not the person with the pulse on the money, start getting more involved. No matter how trustworthy your partner or employee is, it’s crucial to know what’s happening to your money at all times, so that everyone can always make decisions that are best for the company.
Review your progress
Even if you set financial goals when you started the company, things are different now, and your financial path may be going in a different direction than you imagined. Looking back is just as important as monitoring the present and looking toward the future. What lessons have you learned from your past financial successes and failures and how can you apply those learnings to future endeavors? Understanding your past financial history will allow you to take control of your finances in an informed way like never before. While numbers are pretty black and white, your financial journey isn’t so cut and dry, as it’s all about interpretation. Don’t hesitate to change your goals, alter your approach, cut back, shift directions, or do more. When you’re in control, you have the wheel.
Get an expert involved
There are many benefits to getting an outside expert involved in your business finances, acting as a CFO, without making the big hire. Numbers and finances aren’t for everyone, which makes outsourcing your company numbers a great way to get the responsibility off of your plate and into the hands of a trained expert. Even if you “get it,” your schedule may not allow for you to be buried in the finances all of the time. A second opinion with an expert is not just about freeing your time, it’s about getting another look from someone who can easily spot gaps or opportunities. Hiring someone else to help with your finances might seem like you’re giving up control, when in fact, they are just helping you get control back. An expert can help you understand your numbers and recommend smart ways to attain your goals.
Just because this is the way your business finances have worked for years, doesn’t mean that it’s the only way. Change is not inherently bad. Of course there’s the phrase, “if it ain’t broke, don’t fix it,” which rings true in some circumstances, but many times your company might just need a nudge to switch things up. It’s not about changing what’s going well; it’s about making improvements, enhancing how your money is performing, and filling in any gaps that may be hurting your business. Don’t settle for what’s easy or traditional because you might miss out on some great future opportunities. While your money may be working well for you, and you haven’t noticed anything bad occurring, it could be better than “well” by simply making a few adjustments.
The one thing that you can do to improve your finances is to take control. While there are many ways to attain control or re-gain oversight again, what’s important is that your decisions align with your company’s values and contribute to your business goals. Financial control is about stability, security, and growth, and what you do today will greatly impact your tomorrow.
Myers CPA acts as a fractional CFO/outsourced accounting firm, so you can focus on your business, while we focus on the finances.