Companies With Good Processes Enjoy Bigger Profits
I’ve been a numbers and process-driven guy for my entire business career and in all these years I have truly seen the good, the bad and the ugly when it comes to financial record keeping and business processes and procedures.
As an experienced CFO with over 20 years diversified practice, I’ve seen it all: companies that are run by the books and companies that have no books; companies that have in-house financial professionals and others that outsource this fundamental facet of their business; companies that fly by the seat of their pants and those that have all of their critical business information in place and well documented.
In looking back over the years, one of the most important conclusions I’ve witnessed is that the companies with established and well-documented business processes generally recognize greater profitability than those that don’t.
Most would agree we’re all living in a time of massive global competition, and with unprecedented access to information – at the touch of screen, or a click of a mouse. Our customers, whether you are selling consumer or business products and services, have only to go to the Internet to research and find a resource or vendor for just about anything.
The companies that aren’t fast and nimble or are ineffective when reacting to customer demands are the companies that will lose their share of the market. The companies that don’t have the right processes in place enabling them to run their businesses in a cost-effective and profitable manner will lose their shirts. It’s just that simple.
Still not a believer? Here’s why you should be:
- Business process improvement will help you to eliminate inefficiencies that are costing you time and money. Do you really know why certain things are executed in the way that they are? Is it because they’ve always been done that way? Is it the most efficient way?
- What about your human resource allocation? Are you staffed appropriately or do you have departments that are over-staffed and others that suffer from too many employees wearing too many hats?
- Business processes will increase the sharing of knowledge and job responsibilities. It’s a benefit to your bottom-line if employees are cross-trained and there is open communication within and between departments.
- Success, often hinges on three key components of your business: your people, process, and technology. By focusing on improving your processes, you are forced to look at your business from your customer’s point-of-view. That’s always a good thing.
We founded the CFO Squad in large part to help small companies establish sounds business and financial processes, document them, and ultimately drive improved efficiencies and bottom-line performance.
As former PCAOB auditors, CPA’s and CFO’s with legal backgrounds, we’ve compiled a unique blend of expertise that understand the issues that small businesses like yours often face on a daily, monthly and annual basis. Our professionals have the backgrounds needed to create and build your business processes and the experience to help you reduce your costs and expenses.
In addition, our financial reporting systems can quickly improve your company’s operating efficiencies, creating the processes and establish the procedures you’ll often need to become profitable or increase your company’s profits.
Learn more about the CFO Squad at www.cfosquad.com,