This includes the pulse or heart rate, body temperature, respiration rate, and blood pressure. Taken together, these help indicate the state of the patient’s essential body functions.

If any – or all – offer some cause for concern, the doctor can start diagnosing the patient more thoroughly, before suggesting a course of action…

And now we’ve arrived at the part where you’re wondering why we’re discussing basic medical practice.

Well, this idea of ‘vital signs’ is something that can be comfortably extended to your business.

Your company’s financial health should be examined regularly to make sure there are no underlying maladies that will only grow worse if left untreated.

Knowing What to Look For

These financial ‘vital signs’ have many names, some of which may be familiar to you. They include: Key Performance Indicators (KPIs); business metrics; critical success factors; and moneymaking statistics.

No matter the label attached, they are all essentially the same thing: a means of tracking the performance and success of your business.

Just as a soaring temperature or irregular heartbeat will make a physician want to dig deeper in diagnosing their patient, there are a few things you should keep an eye out for when it comes to the health of your business.

For instance, revenue is a clear indicator as to the financial performance of your company. By monitoring your income in comparison to your expenses, you will have an understanding of how much you are making (or not, for that matter), and why.

And when it comes to revenue, consider the various streams. In particular, online sales are simple to measure by implementing sales software, allowing you to spot trends and take action before it’s too late.

Or perhaps you could track the referrals that bring you new business. This will help you determine whether or not your marketing endeavours have been worthwhile, and if your current clients are actively recommending you to their network.

Once you have those customers, think about retention. How many clients are returning to your business over time after first working together or selling them on a discount or offer? Are you maintaining a loyal customer-base, or are you struggling to retain them? The answer will give you an insight into your company’s customer service capabilities.

Take the Pulse of Your Business

These are just some of the Key Performance Indicators – or vital signs – that you ought to look out for as you measure the performance and success of your business.

Understanding how your business is doing at any given moment is crucial to helping you make informed and effective decisions as its leader.

Tracking financial and non-financial metrics can help keep your business healthy. And as with your body, spotting any worrying trends early will make it a great deal easier to remedy than if you leave them untreated.

And it can be tough when you dig deep and track these metrics, only to discover that your business is living on borrowed time. When that happens, you must be ready to evaluate the alternatives; and quite often those alternatives can mean making difficult decisions, such as letting people go, selling the business, or filing for bankruptcy.

Start Tracking Today

Putting a plan in place to track key business metrics is fundamental to the growth and success of your company.

By staying on top of your KPIs, you will be in a much better position as you work with an up-to-date and accurate budget. And by doing so, you will be able to grow and invest in new resources, personnel, or locations, without putting your business under financial strain.

If you’d like to discuss setting up a system to track your key business metrics, please contact us.

The post Is your business ill? appeared first on Checkbox Accounting.

Long days, longer nights, and no-one to talk to when the going gets tough – it can feel isolating and demoralizing.

But there is a solution: speak and share with other business owners.

Many small business owners actively fear working with other businesses, worried that they may take advantage of them rather than offering guidance and advice.

However, the rewards can be terrific. By tapping into your local network of fellow entrepreneurs, you have the opportunity to become more knowledgeable, understanding, and efficient.

Why Should I Reach Out?

There’s no two ways about it; being a small business owner is stressful.

All the responsibility, all the decisions, the planning, strategy, and execution; it all falls squarely at your feet. And it can be quite overwhelming.

That’s why having a mentor – or joining a local group of small business owners – can help alleviate some of that stress. They give you a sounding board with whom you can discuss your problems and share your successes.

And this isn’t a new concept by any stretch of the imagination.

Take a beat and think about the franchises you see just about every single day. Starbucks, Wendy’s, Dunkin’ Donuts; they all share financial data and marketing information with the other stores within their franchise in order to better understand the overall market.

Won’t This Threaten My Business?

You might look upon this arrangement as a threat to your business. Sharing confidential information with a perceived competitor will understandably make you uncomfortable, and it will impact your business.

But, if done right, that impact will be positive, not negative.

By working with your peers, you will improve your understanding of the local marketplace, boost your efficiency and delivery, and oversee a better standard of customer service. This will only serve to drive more business and increase profits.

Where to Start?

If you run an independent small business (i.e. not a franchise) then it can be tough to know where to start when reaching out to fellow entrepreneurs.

Becoming active on social media (Twitter and LinkedIn in particular) is certainly a good idea. This gives you access to a whole host of like-minded individuals, many of whom won’t be swimming in the same waters, and are therefore less likely to appear threatening to your business activities.

But the fact is, nothing beats face-to-face networking.

Search online for local organizations, groups of similar business owners, or an association to join in order to meet and develop valuable business relationships with your peers.

Here are a few in our neck of the woods worth checking out:

Roseville, CA

• Roseville Granite Bay Business Network
• Women In Networking (WIN) Roseville
• Miscellaneous Small Business Meetups – Roseville (Meetup.com)

Sacramento, CA

• Sacramento Business Social Network Group
• Sunrise Business Builders
• Sacramento Area Business Connection

U-Link Network also has a number of local groups meetings listed on their website.

If you can’t find one nearby or relevant to your industry, consider setting up your own. It can be as informal as meeting for a coffee every few months, but just as valuable as an established organization.

And be sure to complement these meetings by fostering professional relationships with business advisers and mentors.

Put Yourself Out There

As your business grows and develops, and you begin to better understand your own key financial data and moneymaking statistics, you will find that you actively want to compare yourself to your peers.

It’s only natural to seek to benchmark yourself against others. In fact, it can become a crucial part of the overall success of your business.

By simply being active in your local business community, you will open up the doors to new and prosperous relationships, promising leads, and a wealth of advice and experience.

And by improving your knowledge of the local market, it will push you to be a better business leader.

Put yourself out there and make it happen.

If you’d like a helping hand in getting started, contact us today to speak with one of our friendly advisers.

The post Don’t Be Afraid to Work Together appeared first on Checkbox Accounting.

In particular, the financial aspects of a growing organization require a great deal of attention. And while you may not be in a position to bring someone on full-time to take care of this for you at the moment, that doesn’t mean that you shouldn’t look to delegate these tasks to a professional.

By outsourcing your financials to a part-time CFO (Chief Financial Officer) you can access “big company” resources without the expense.

In this post, we take a look at the benefits of appointing an outsourced CFO.

What is a CFO?

A CFO is a senior executive who is responsible for the financial affairs of a company or other institution.

These responsibilities often include the past, present, and future financial health of an organization.

Typically this involves presenting and reporting accurate and timely historical financial information; addressing the present financial condition of the organization, taking into account risk and liquidity; and economic forecasting so as to ensure the company’s future financial success.

What are the benefits of hiring an outsourced CFO?

There are a number of benefits to outsourcing a CFO’s duties. These include – but are not limited to – the following:

Save Money

An average CFO salary in 2014 clocked in at around $314,000 per year. For a number of small and growing businesses and organizations, this level of expense is simply not feasible.

However, this does not diminish the need to appoint someone to oversee financial matters, and so rather than hiring a full-time CFO (which comes with the need to pay taxes, health insurance, and other benefits) you can outsource the responsibility to a qualified individual for a flat fee. This represents a significant amount of savings, without compromising on the quality of work your organization receives.

Valuable Insight & Advice

When you delegate your financial responsibilities – including your accounting, bookkeeping, financial statements, income projections, tax, budgets, and cash flow management, among others – to an outsourced CFO, you are tapping into a wealth of experience.

What’s more, you will receive a fresh set of eyes ready to address your organization’s challenges and help solve its problems.

And when you’ve hit that metaphorical brick wall, and you don’t know how to go about improving the financial situation of your company, you’ll have a source of expert advice and guidance ready to step in and steer you in the right direction.

Accuracy, Efficiency and Experience

An outsourced CFO can help you make better, more informed decisions as the leader of your business or nonprofit.

They do this by streamlining your accounting systems, doing away with out-of-date methods and processes, so that you’re looking at only the most accurate and up-to-date financial information.

You’ll also have peace of mind knowing that your company’s finances are being looked after by someone with a high level of experience, built up over many years. Your financial statements will be delivered with accuracy, financial analysis conducted with care and consideration, and your records organized so as to be ready when potential investors come knocking.

Are you ready to hire an outsourced CFO?

If you’re still in startup mode, you will find yourself wearing a number of different hats; from sales executive and HR manager, to bookkeeper and marketing director. But there will come a time in every growing business or nonprofit where your time is better spent on the big picture.

And the big picture should always be underpinned by solid financial information.

So, if you’re ready to embrace the growth of your organization, you should begin removing your many hats. Allow them to be worn by the relevant experts and watch your business or nonprofit prosper.

Checkbox can take the strain, providing the tools and expertise necessary to interpret your financials and help you meet your personal, financial and social goals.

As your strategic financial partner, you’ll wonder why you hadn’t outsourced the CFO role sooner.

Contact us today to discuss a customized plan that meets the needs of your business or nonprofit.

The post The many benefits of an outsourced CFO appeared first on Checkbox Accounting.

Core competencies for success are a unique set of skills and abilities that can guide you in your quest to reach your career goals.  Knowing what
these competencies are and identifying them within yourself can help you gauge your skillset and create goals for personal and career success.

1. Identify.  Identify your skills and determine which ones are most valuable.  Determining the value of your skills will require knowledge of what the value of the skill is in the workforce (Is it sought after?  Is it rare?), your mastery of the skill, and most importantly, how much you enjoy using that skill.  If you dislike using the skill but you are very good at it, the value changes because you are less motivated to use it, and long term use of the skill will ultimately further you from your goals.

2. Market.  Market your skills that are in highest demand.  Keep that list of skills that you identified in step one at the top of your mind.  When you go in to talk to a potential employer or client, sell those skills to them.  Know why the skills are valuable and know your proficiency levels, and use the information to sell yourself as the solution to their needs.

3. Target.  Figure out who you should be marketing to depending on your skills, and market to them.  If you determine who you should be targeting and there are one or more skills that you need to work on, make that a high priority goal for yourself.  If there are skills that you are very proficient at but the skills are irrelevant to the needs of your target, don’t waste too much time selling those skills to them.  Play up the skills that are important to your target.

4. Network.  Proactively start and engage in meaningful industry conversations.  Educate yourself on important industry topics and position yourself as a subject-matter expert.  Never stop educating yourself on industry topics and changes within the industry.  Seek out new and revolutionary information.  Bring new industry topics up in your conversations, and create useful connections with others during these conversations.

5. Be aware.  Know your worth and your limits.  Don’t accept less than you should, and don’t put yourself in a situation where you are surpassing your own limits.  Accepting a position that pushes past your limits will make you appear incompetent and jeopardize your growth in the industry.  Accepting less than your worth will also jeopardize your growth.  Find your sweet spot and create goals that will allow you upward movement.  Frequently re-evaluate the value of your skillset and re-assess your goals.

By knowing your competencies will give you the confidence you need to negotiate and achieve the personal and career success you are working toward.

The post Identifying and Building Core Competencies for Success appeared first on Checkbox Accounting.