When you scale you need to have a more analytical approach of targeting and segmentation, but in the beginning, it’s more much qualitative. (Pavel Malos 6/11/18, uxdesign.cc)
Chief Executive Officers, Board Members, and Investors have a fiscal responsibility to ensure an organization can handle planned growth. For-profit business leaders must back up the strategy with the right level of working capital and financial infrastructure. Nonprofit leaders must make certain they have the right financial and fundraising data to analyze and plan effectively.
QuickBooks and other simple financial programs have elevated the confidence of professionals, not trained in accounting, past their competence. These systems allow you to process the basic information easily; however, the non-accountant may not have applied the required strategic thought process to the design of the infrastructure that a trained and experienced financial strategist would apply. Some entities can be run effectively in QuickBooks, and the financial data can be analyzed if the infrastructure is set up properly in the beginning.
All organizations need to have financial information, in proper segments in the General Ledger and make sure there are proper period end procedures. Lack of proper information can lead to performing services or selling product at a loss, non-compliant reporting and a lack of proper cash flow. All of these issues can lead to an untimely end to any organization, for-profit or nonprofit. We have all heard of employees showing up for work one day to find the doors locked and an abrupt end to their job and paycheck. Sometimes these employees learn their employers have not remitted federal income taxes, deducted from their paychecks, to the IRS and they have to pay the taxes again. Leaders of organizations should listen to their financial leaders when they request upgraded systems and more people to account properly for the organization’s financial data.
Leaders who make it a priority to set up, manage and monitor metrics have thought through configuring their reporting infrastructure. Leaders without such foresight run through their day-to-day life worrying about how to make payroll and pay bills, with little to no awareness about which decisions are working and which are not working to scale growth to new levels.
Barker Associates has the unique ability to work with all sizes of organizations and building infrastructure that matters. Contact us today!
Mindy Barker, Founder & CPA | Jacksonville, FL 32256
(904) 394-2913 or (904) 728-2920 | CFO@MindyBarkerAssociates.com