Feature:
Staying On Top of Your Business – and Personal – Financial Health

Every business owner knows financial organization and management is absolutely essential to survive. This is particularly true for small businesses that rarely have full-time CFOs, Accounting Departments or Controllers on staff to oversee this function. With all the demands business owners face every day, it can be hard keeping up with it all. This can also spill over into the business owner’s personal finances. Though unintentional, things end up falling through the proverbial cracks only to resurface as serious problems down the road. Like it or not, business and personal finances can have a direct impact on each other.

So how do you fill the cracks? By utilizing the expertise of independent financial professionals other than CPAs. Make no mistake: CPAs play a very important role. All business owners should work with a qualified CPA for their expertise and advice, especially in tax matters. However, small business owners can get the essential financial help they need from other professionals at half the cost of hiring a full-time Controller to handle their business finances and an Administrative Assistants to manage their personal finances.

These “other” professionals are Virtual CFOs, part-time Controllers and a newer alternative that bridges business and personal needs - Daily Money Managers. Highly qualified, most of these professionals come from strong corporate financial backgrounds. All recognize the general void of strong financial acumen and management amongst small businesses. These professionals usually work on an hourly or negotiated fee basis and meet with the business owner(s) regularly. While overlap may occur in certain areas – and two of the three professionals focus on the business only – all three offer a distinctly different type of service depending upon your needs.

The Virtual CFO’s primary goal usually is to identify and create protocols for improving profitability and balance sheets. They can also serve as a liaison to your CPA for tax preparation and planning as well as to investors or Advisory Boards your business may need to report to on a regular basis. This is often a very cost-efficient way to get the “C-level” expertise, insight and oversight so often lacking in small businesses.

A part-time Controller’s function can duplicate a Virtual CFO to some extent in the areas of creating cost control efficiencies, A/R and A/P oversight. The difference is that a part-time Controller can also execute the tasks of running and overseeing payroll, A/R and A/P; financial troubleshooting and coordinating tax payments. They may also act as a liaison between the business owner and CPA in tax return preparation and planning.

The Daily Money Manager looks at the business’ and the business owner’s financial health by focusing on day-to-day financial management of your business – including hands-on management of A/R, A/P, payroll, QuickBooks (or similar), budgeting, expense review/management, etc. – as well as the day-to-day demands of the business owner’s personal finances: bill paying, account reconciliation, handling insurance claims, non-advisory oversight of investments and retirement assets, and additional related services.

Each individual situation requires a different approach. Take advantage of the expert services from the independent professionals that are right for you. Doing so will allow you to pursue your passion and regain the freedom needed to grow your business. You can be confident this cost-effective decision will ensure good financial health for your business and make sure it is running at its “financial best.”

For more information, contact Caroline M.C. Deren, Managing Principal of CenterBridge Solutions LLC, provider of daily money management for individuals and small businesses, at 678.360.3047 or cmd@centerbridgesolutions.com.