In Pursuit of Profit
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We’ll break down what a COA is and why you need one, give you some pointers on how to create a COA, provide an example of a chart of accounts for you, and give you some helpful reminders to be aware of as you create your own COA. Let’s get started talking about accounting chart of accounts fundamentals:
What is Growth?
For our firm in the early days, growth was not a given. In fact, we didn’t really plan to grow at all. Growth was much different in those early days. But because we had a very talented consultant group, we were able to land quite a bit of business and our team would get full. Unfortunately, at that point you have two choices – add to the team and grow organically or slowly lose market share as clients go elsewhere because you’re too busy. Now, 20 years later growth means somethings completely different. In today’s world growth for us means geographic expansion across the US. It is a very carefully planned strategy that we work very hard to execute. But our definition of growth may not be your definition of growth.
What is your recourse if you cannot remedy performance issues? How do you set up future hires or service providers for success to avoid these kinds of issues in the future?
We’ll cover these topics in our guide to accounting management:
And while we yearn for a return to normal, we’re constantly challenged with answering the question, “What is normal now?”
The practice of accounting has not been immune to these challenges. During the pandemic, most businesses were forced to rethink their basic accounting processes and structures just to survive. While remote work and part-time bookkeeping has been a long been a staple of many small businesses, many larger enterprises have been forced to re-think how to execute their missions in light of mass shutdowns.
But what is normal going forward? What, if any, of the revelations and lessons of the past 2+ years can and should be brought forward and adapted as the new normal?
Other times they are more internally motivated, looking for ways to improve and standardize the handling of their financial data to facilitate growth.
Either way, many businesses come to us looking for a set of generic standard accounting policies and procedures that they can just copy. We understand the rationale here. Why reinvent the wheel if you can just take what someone else is already using it and tweak it to fit your company’s needs? And in all honesty, there is nothing wrong with modifying an already existing manual if you know why your business needs formalized accounting policies. However, simply creating accounting policies based on someone else’s business practices without an understanding of why you are doing it and what kind of outcome you are looking for is not the right strategy.
The pandemic forced most companies to go remote for what was originally anticipated to be a 2-4 week stint. Over two years later, many companies still have remote employees, at least to some degree.
Hybrid working has become the new normal and small business owners continue to struggle with the added challenges of how to manage remote workers. While office-based businesses have largely adapted to managing a remote workforce, other types of small businesses continue to wrestle with the increased demands of location-divided staff.
Communication challenges, technology barriers, and access to key information remain difficult among small and mid-sized companies trying to learn how to manage remote teams virtually. If this describes your business, our guide to managing remote workers will give you the tools needed to be successful in this new era:
There is no doubt the US workforce landscape continues to experience significant changes. The business challenges of the last few years have caused many companies to rethink how they can best execute their operating plans. With more and more companies outsourcing their accounting functions, there are a few important things to keep in mind to ensure a beneficial outcome.
One of the most common questions we hear when talking to prospective clients is “How do I know if I have the right accounting team in place?”
Now, the underlying questions wrapped in this broader question can vary to include things like:
If you are wrestling with these same types of questions, use this guide to determine if you have the right accounting team in place to move your company forward:
Written in conjunction with our partners at CFO Selections
A cash flow shortage is the number one reason why small businesses fail, but even mid-sized and large companies need smart cash flow management to survive and thrive.
Insufficient cash forces companies to make difficult decisions about who is going to get paid and when. Unfortunately, this can lead to vendors and suppliers being paid late, being overdue on rent, even employees waiting on paychecks.
It is not an exaggeration to say that cash is the lifeblood of any business. Not having enough money to pay for expenses can erode business credibility, which leads to:
Ultimately, a company’s potential will be stifled if there is not enough capital to invest in the assets that facilitate growth, and its very existence can be threatened as well.
So, are you ready to manage cash flow for the coming year?