Since I started Crown 10 years ago, I’ve created several classes for business owners about how to manage their financial information better. The classes are a great way for me to spread the word about not just accounting practices, but the power of knowing your numbers to improve your business.

I’ve gotten so many of the same questions over and over through the years that I now cover them as regular topics. The business owners I talk to through the classes are hungry to handle their finances the right way and find out how to get valuable insights from their financial data. I cover topics like those below to help them get started.

Understanding your balance sheet and cash flow statement

The balance sheet is a huge issue for business owners. Many are operating their business based primarily on their profit and loss statement, but the balance sheet is where you really get to take control of your business. 

We talk about the cash flow statement a lot in this class (and here on the Crown CFO blog) because so many business owners misunderstand it. But I’d estimate that 99% of accountants don’t know how to calculate one. Many business owners also don’t know the difference between a cash flow statement and cash flow forecast. 

In my class, we prepare a cash flow statement together, and it’s often eye-opening for the business owners there. But we go through it because I want them to have a tool they can take away and start understanding their business better.

Knowing your metrics inside and out

There are a million things to measure in business, and each one can tell you a little something about how to operate better. But nobody has the time or capacity to track a million things, so it’s critical to focus on the right ones. 

Identifying the most important metrics to measure is unique to every business. In retail, it’s your inventory and supply chain, while in construction, estimates and labor costs will be a bigger priority. A Fractional CFO helps you determine the best metrics to measure, makes sure you have the right systems and processes to do it consistently, and helps you set goals and make strategic decisions based on them.

Tackling both budgeting and forecasting

Budgeting and forecasting are both important but they’re also very different. Budgeting is a detailed, organization-wide exercise around spending, while forecasting is a strategic plan for key leaders. 

Forecasting involves:

• Setting forward-looking goals 
• Determining the metrics you need to track to achieve them
• Building out and analyzing your income statement, balance sheet and cash flow statement to identify the resources you have available for your goals
• Measuring and refining your results to keep working toward your goals

A Fractional CFO is the partner you need by your side as you go through the forecasting process. This isn’t an exercise for your controller or accounting team — it requires high-level strategic experience to do well.

Educating business owners to help them reach their goals

The larger theme of all these topics is “know your numbers.” It’s tough — you didn’t start a business because you wanted to analyze reports and sift through data. You did it because you loved your product or service and saw a need in the market.

It’s the same for us at Crown CFO. We see a big need for SMB owners to understand their numbers and how that data drives their business positively or negatively.

When you work with Crown CFO, you’re getting a Fractional CFO with years of deep, diverse experience in financial leadership who can take the weight of worrying about the numbers off your shoulders. You can stay focused on strategic decisions and looking ahead when you have someone knowledgeable supporting you on the financial side.

If you’re in Kansas City, one of the experienced financial leaders at Crown CFO can help you tackle your financial challenges. Contact Kerry George at kerry@crowncfo.com to bring a trusted, expert Fractional CFO to your business.