What functions should my finance and accounting team be providing?

• Routine tasks like paying bills, recording deposits and handling payroll
• Monthly closings and account reconciliation
• Cash projections and monitoring
• Creating and printing reports
• Financial analysis of operations
• Integration of strategic plan with accounting operations
• Ability to communicate your financial situation both internally and externally

Is my accounting staff doing what they do properly?

• Are you receiving reports on a timely basis?
• Are the reports accurate and do they help you understand the results and current condition of the business?
• Are your bills paid on a timely basis, cash permitting?
• Are your receivables collected on a timely basis?
• Are your critical internal and external reporting requirements met within deadlines?
• Are bank and other critical accounts reconciled on a timely basis?
• Can your staff answer questions about the business?

What types of information should I be getting?

• Monthly and year-to-date financials on a timely basis - timely is what you need to run your business
• Budgets and actual financial reports
• Annual financials on a timely basis, to meet tax and banking needs if required
• Cash flow projections, if required
• Operational reports as defined for your company and industry to assist in business operations, which could be as often as daily

How can I tell if I have the right tax accountant?

• How often does your tax accountant contact you?
• Do you have tax planning meetings before your company's year-end?
• Does your tax planning provide sufficient time to make changes and impact your tax liability if required?
• Does your tax accountant know your business and your personal situation?
• Does your tax accountant know your business plan - buy/sell, expand, lease, exit strategy, etc?
• Are there specialized tax laws that impact your industry and is your tax person familiar with them?

If my financials show that I'm making money, where's the cash?

• Are your customers paying your invoices on a timely basis?
• Are you paying your bills immediately and not taking advantage of your due dates?
• Are you growing rapidly and financing your company's growth, (i.e. has your Accounts Receivable grown rapidly)?
• Did you purchase capital assets such as equipment and fixed assets? This uses cash not reflected on your income statement.
• Do you have more inventory than you can sell within several normal sales cycles?
• Could you possibly have theft or internal losses?

How do I select the right bank?

• Does your bank provide the products and services you need?
• Is your bank located at a convenient location for you to do banking?
• Do you have a credit line to fund your operations and, at a minimum, any cash gaps you may experience?
• If your bank has denied your loan request, has it demonstrated a willingness to work with you and assist you to overcome the obstacles?
• Do you have all of your accounts concentrated at one bank to leverage your negotiating position?
• Has your bank contacted your business, especially if it is a growing business?
• Do you have a banker at your bank that you can call anytime and get service?
• If you are in a unique industry, does your bank understand your business niche?
• Do you meet with your bank at least once a year to discuss your business growth needs, account analysis for fees and new services/products the bank offers that can help your business?

Should I buy or lease an asset (not real property) and how can I tell?

• What is the average life of this equipment?
• Can you afford the difference in cash outflow (usually buying requires a greater cash commitment upfront) between buying or through monthly payments?
• Can you afford to take the monthly expense hit if you lease?
• Will you want to keep the leased item after the lease period? What will the cost be to buy after the lease period is completed?
• Do you need the flexibility to change your mind? How easy is it to sell the equipment vs. breaking the lease?

Can I afford to give that employee bonus or customer discount?

• What is your motive in giving the bonus or discount?
• Can you afford it?
• Will this impact any bank, investor or lender restrictions?
• Does the discount result in increased sales and are you covering your direct costs? What is the contribution to fixed cost coverage?
• What is the impact to other employees or customers, if they find out? How will this impact future employees/customers?