Throughout 2022, trends such as the Great Recession and Quiet Quitting were rampant. In 2023, retaining top talent and planning for succession are critical for business leaders to avoid disrupting the growth of their organizations. Succession planning is not only about determining your organization’s next leader, but also about creating a continuous process that assesses organizational needs and builds a climate for an executive to succeed. An effective succession plan must be linked to the organization’s strategic plan, mission, and vision. All organizations need to prepare for the following ..read more

I’ve seen it happen often. An employee walks off the job, and there is a sudden scramble in the office. Not only are there security issues, but who is going to do the work that Bob / Sally was doing? It seems to be more critical now, with difficulties in staffing. It’s always been hard to find the right people to do the work in your company, but now there’s the problem of finding someone to fill the empty slot in a tight hiring environment. If you’re an entrepreneur, and you have a small staff, you are really picky about the people who are taking over a job that you’ve done yourself for the pa ..read more

Even though I am not a CFO, I recognize that there are ways that I have been impactful to my clients. After all, although the matters that I deal with are not strategic, I am in a good position to be advising not only my client, but the staff I work with, on some practical interventions that help assure that the numbers that everyone is depending on are accurate. I realize that I have been impactful to my client’s AP clerk, in helping her complete her bank statement reconciliations. Now you are wondering how working with someone on a bank reconciliation can be impactful. Afterall, the exercise ..read more

Often, I’m told by a business owner that they don’t understand why their financial statements show strong profitability for two or three months, and then — suddenly — they have a month with a significant loss. They have stable sales, but the highs and lows of profitability are confusing. You don’t need to be a CPA to understand cash versus accrual basis reporting, and it’s important for any business owner to understand the difference. Cash Basis shows how money has moved through your bank account. Accrual Basis shows the profitability of the sales that you’ve made. Often business owners foll ..read more

You know how everyone likes to have a little extra cash on hand for those unexpected expenses? Well, your business is no different. So why not set up a petty cash account with a small amount of money that can be used for things like running to the hardware store or office supply store? The important thing is to keep track of all the expenses associated with the account. You should also keep receipts for all expenditures. At the end of each month, you can reconcile the account by categorizing all the expenses and then making a journal entry to debit the relevant expense account and credit petty ..read more

If you’re in a business that’s experiencing exponential growth, one of the problems that you’re facing even now is staffing. How are you planning on staffing for this as you move forward and continue to experience high levels of growth? Consider: That strategic plan for how you’re going to conduct staffing is critical to your success. So, let’s listen to Larry Chester, President of CFO Simplified, to hear what he has to say about how business owners can strategically plan for staffing during periods of exponential growth. Don’t Wait Too Long to Prioritize Staffing If you wait until you are st ..read more

As a business owner, you must understand the importance of reconciling your accounts—and no, not just your checking accounts! Do you know what accounts you need to be reconciling regularly? Read on to find out from Larry Chester, President of CFO Simplified. Do You Know What Business Accounts You Must Reconcile? Larry Chester speaks with business owners all the time about their month-end close. The first question he asks them is, “When was the last time you reconciled your checking account at the bank?” To which most say proudly, “Well, we do that every month!” Some business owners, however ..read more

Everyone has a checkbook. If you think about it, your personal life operates just like your business, but it’s on a cash basis, rather than an accrual basis. You receive money and you pay it out. You can’t pay out more than you have. This is called your business’ cash flow.  The balance in your checkbook is what you must work with. No more, no less. And, if you have a savings account that you put money into regularly for retirement or vacation plans, you’re practicing accrual accounting at home. Your business is similar. You have money coming in and money going out. Here’s a simple, six-s ..read more