Many small business owners would love to have an in-house Chief Financial Officer. A full-time CFO can bring several benefits to a small business, handling a lot of the decision making when it comes to its financial strategy.
However, many small business owners quickly find out that hiring a full-time CFO can be quite expensive, especially if it’s an experienced CFO. Enter the part-time CFO.
Small businesses can benefit greatly from cost-effective outsourced CFO services. Outsourced CFO rates are a fraction of the cost of hiring an on-staff CFO to be one of your team members.
In today’s unsteady economic environment, your small business is likely already stretched thin with shutdown-related staffing cuts, loss in revenue, and uncertainty about the future. But getting through the tough times often means building a long term foundation that can withstand bumps along the way. Fortunately, many businesses have found that they can afford the experts they need to build the cornerstone of financial stability necessary for long-term survival when outsourcing bookkeeping.
While your team continues to do the hard work of maintaining and building up a business during difficult times, outsourced accounting services can save you precious time and…
It’s certainly not easy being a jack of all trades as a business owner or entrepreneur. When deciding to take on the risk of starting a company, you probably did not plan on spending most of your time learning bookkeeping basics, payroll administration, financial statement preparation, and scrambling to meet tax-filing deadlines. Spending too much time on these bookkeeping and accounting activities takes time away from important tasks to running and growing your business, such as innovation, sales, customer service, and pursuing opportunities to expand.
Nevertheless, as an entrepreneur is your own bookkeeper helps you learn key financial information about…
We have gotten a lot of questions about the proper GAAP accounting treatment of the PPP loans and wanted to highlight some rules and offer guidance. These steps walk you through each step of the journal entry.
Book-entry upon receiving the disbursement (date is key for loan forgiveness application). Create a separate cash account on the G/L so you can track the usage for forgiveness.
DR New Cash — Existing Bank Account $100,000
CR PPP Loan Payable $100,000
Since the loan is not due for approximately 2 years with a 6-month deferment, classify this loan as long-term and not…
Notably high on this list are Bad Business Model, Mismanagement of Funds, and “Acquisition Flu.” The authors of this report also noted that companies that failed due to mismanagement of funds had a large number of investors and had passed several investment rounds.
While your impulse as a growing business may be to keep betting big, eventually, you’ll need an accountant or CFO on your team who will check your desires and provide sound financial advice. …
The Three Tips for Fundraising in Any Down Market
If you started a company in the last two to three years, chances are you’re flush with investment capital. Congratulations, it must be nice.
However, unless you’ve been living under a rock, you’re aware that the hot venture capital (VC) market we’ve experienced comes on the heels of one of the worst funding environments in recent history. And, as you peek your head out from under, you’ll also see that the funding market — angel, VC, or otherwise — is starting to take another downturn.
Alas! Just when you were getting…
Just like your car’s speedometer and tachometer, cash flow and profit are crucial gauges of your company’s financial performance. People who are not experts in finance and accounting may confuse the two terms. But when comparing cash flow vs. profit, it is important to remember the differences when making decisions about your company’s operations.
In short — Profit represents the number of funds remaining after all of a small business’ expenses has been paid, while cash flow refers to the net flow of funds into and out of business over a set period, often a month.
Robust cash flow is…