How does BashoffCFO do its full business analysis?
The very first thing we do is examine the company’s activities and determine:
- What its business is and its goal?
- What products and services does it offer?
- Who are the people, and how do they operate on a daily basis?
- How do they operate internally and with customers?
- How do they collect their money?
What are the areas that can cause cash flow problems?
Once we have a good understanding of how the business operates and what its true purpose is on a daily basis, we look at certain areas that cause cash flow problems, such as:
- Revenue Sources. What exactly are the margins? What are your products and services, and what margins do they generate? Frequently, people will have products that sell well and have a high volume but have very low margins. If you look at the profitability of some of these products and services, you’ll see losses or very low margins, so we’ll analyze these products and services to determine what profits are being generated.
- Business Expenses such as Payroll. We will also do a comprehensive review of all of your business’s expenses. Your equipment acquisitions. your daily expenditures, your payroll.
How can payroll cause a major cash flow problem?
Payrolls are big categories because labor is often the most expensive part of running a business, and there is often a lot of waste in labor that can be traced back to inefficient processes.
Poor processes and procedures within a business are often traced back to the fact that many businesses don’t have written procedures; instead, they operate day-to-day under the assumption that everyone understands what they need to do.
How BashoffCFO works?
At BashoffCFO, we look at how everything fits together and often make a flow chart to show how all the people, processes, and procedures work together. Because cash flow is the lifeblood of a business, everyone must strive to be paid and produce enough money to cover all expenditures and wages, as well as maintain sufficient cash flow, in order to continue a company and ensure its long-term sustainability.
Do you want to get in touch with BashoffCFO? Call us at 410-952-6767 for a free consultation, or click here to get started.