“If you could only look at six numbers, here's the most important ones for you to keep an eye on. They're going to help you understand the health of your business and how things are going in relation to where you are and the activities that your business is undergoing to get you to that end result of what it is that you are trying to achieve with the business."

- Andrea Jenson

Welcome back to a new episode of the Cash Flow CFO Podcast! Today, we're diving deep into the six key numbers every business owner should focus on at the end of each month. These metrics are crucial for understanding the health of your business, and I want to make sure you know exactly what to look for. We’ll break down each number so that you can confidently review your financial reports and make informed decisions.

Join us to learn the whole story!

“There are some crazy statistics out there that nearly 30% of the businesses that go under do so because of cash flow problems, and the number one source of cash flow problems generally leads back to a bad business model and too high of a percentage of cost of goods sold."

- Andrea Jenson

By focusing on these six metrics, you'll have a comprehensive view of your business's financial health. They’ll help you make informed decisions, adjust strategies as needed, and ultimately steer your business toward success. So, take some time each month to review these numbers, and you'll be well on your way to running a thriving business.

Want to get in touch with Andrea Jenson?

Website: https://thecashflowcfo.com

Podcast: https://pod.co/the-cash-flow-cfo-podcast

LinkedIn: https://www.linkedin.com/company/the-cash-flow-cfo

Facebook: https://www.facebook.com/thecashflowcfo

Instagram: https://www.instagram.com/thecashflow.cfo

YouTube: https://www.youtube.com/channel/UC0kQopRCt9TEbgYjmqA4SMQ

"Having a healthy accounts receivable is really going to keep the business self-sustained, relying on their own cash flow that's being generated from sales and delivery without having to go out to outside resources."

- Andrea Jenson

Welcome to a brand new episode of the Cash Flow CFO Podcast. Join me for a conversation about an issue that's been cropping up a lot lately... slowdowns with accounts receivable. If you're noticing a delay in your receivables, it's crucial to address it before it impacts your cash flow and ability to meet financial obligations. I discuss some actionable strategies you can implement right now to help get your cash flow back on track and keep your business self-sustaining.

Join me to learn the whole story!

"When you have a prolonged accounts receivable problem, it's going to catch up with you and eventually it could potentially damage your credit ratings and increase the cost of borrowing money down the road."

- Andrea Jenson

Identifying Root Causes and Prioritizing Receivables

Both external factors, like economic downturns, and internal inefficiencies can cause delays in getting paid. I share the importance of identifying the root causes of these delays and how to prioritize your receivables to collect on high-value invoices first. Additionally, I highlight the significance of maintaining open and personal communication with your clients, which can help facilitate faster payments and strengthen your working relationships.

Optimizing Internal Processes

Once you've addressed immediate receivables issues, it's essential to optimize your internal processes to prevent future delays. From improving invoicing timelines to implementing automated systems, I cover practical steps you can take to tighten up your accounts receivable management. And beyond that, I emphasize the importance of clear contract terms and creditworthiness checks to ensure you're extending credit to reliable clients.

Proactive Communication

I also encourage you to be proactive in reaching out to clients with outstanding invoices. Most delays aren't due to malice but simple issues that can be resolved with a quick conversation. By staying on top of your receivables and fostering transparent communication, you can avoid cash flow problems and keep your business running smoothly. If you need more specific advice or templates, feel free to reach out—I'm here to help!

"If your team is doing that confirmation check-in to make sure that the client received the invoice, they can also be saying, 'We also want to make sure that there's accuracy and we're clear on the terms.'"

- Andrea Jenson

Want to get in touch with Andrea Jenson?

Website: https://thecashflowcfo.com

Podcast: https://pod.co/the-cash-flow-cfo-podcast

LinkedIn: https://www.linkedin.com/company/the-cash-flow-cfo

Facebook: https://www.facebook.com/thecashflowcfo

Instagram: https://www.instagram.com/thecashflow.cfo

YouTube: https://www.youtube.com/channel/UC0kQopRCt9TEbgYjmqA4SMQ

“Having a plan in place is what removes the stress and the worry and the weight of managing your finances because otherwise we’re kind of just throwing spaghetti at the wall to see what sticks."

- Andrea Jenson

Welcome back to a brand new episode of the Cash Flow CFO Podcast! In today’s solo episode, I’m excited to talk about a discovery call I had with a potential client that reignited my passion for what we do at The Cashflow CFO. During our conversation, I had a light bulb moment about the common frustrations business owners face when it comes to making financial decisions. Despite having a CPA and a bookkeeper, many still feel like they’re in the dark, unsure how to use their financial data to guide their business.

Join us to learn the whole story!

“Everybody in your finance division has a role to play... and most business owners, they have the bookkeeper, they have the tax preparer, the CPA, and they’re still saying, ‘I’m missing something.’"

- Andrea Jenson

The Importance of Forward-Looking Planning Tools

The key issue we discussed was the difference between historical financial reports and forward-looking planning tools. Many business owners rely on their profit and loss statements, balance sheets, and cash flow statements, but these documents are backward-looking and don’t help much in planning future moves. What’s missing is a strategic plan that includes forecasting, sales projections, and a clear understanding of where you want your business to be in the next one, three, or five years.

Planning Ahead for Business Growth

We also talked about the importance of knowing your sales pipeline and understanding your sales conversion rate. By planning ahead, you can ensure that you have the right team and resources in place to handle future business. This kind of strategic planning removes the stress and guesswork from managing your finances, helping you to make informed decisions about hiring, investing, and scaling your business.

Allocating Revenue for Success

Finally, I walked him through how to allocate revenue into different budget categories, like cost of goods sold, marketing, general and administrative expenses, and profit. This approach helps ensure that you’re a good steward of your business’s money while still achieving your financial goals. It was a great conversation, and I hope it helps you too! If you have any questions or want to chat more, feel free to reach out to me at TheCashflowCFO.com.

“You have to create the plan. The plan has to align with your big picture vision, right? Because you have the vision and you're backing it up with strategy and that strategy comes at a cost."

- Andrea Jenson

Want to get in touch with Andrea Jenson?

Website: https://thecashflowcfo.com/

Podcast: https://pod.co/the-cash-flow-cfo-podcast

LinkedIn: https://www.linkedin.com/company/the-cash-flow-cfo/

Facebook: https://www.facebook.com/thecashflowcfo/

Instagram: https://www.instagram.com/cashflowcfo/

YouTube: https://www.youtube.com/channel/UC0kQopRCt9TEbgYjmqA4SMQ

“…as a business owner or as just a CEO running a business… probably the first thing you should be thinking about… as it relates to attracting and retaining employees… is are the benefits that we offer today working.”

- Dennis Carlson

Welcome to a brand new episode of the Cash Flow CFO Podcast. Join me for a conversation with Dennis Carlson, Executive Benefits Advisor for Marsh McLennan Agency. Dennis previously played the role of entrepreneur inside the insurance industry, founding Bespoke Benefits in 2009, which was later acquired in 2017. Now, he leads the executive benefits practice for Marsh McLennan Agency in the western United States. Dennis has extensive experience advising on employee and executive benefits, helping businesses attract and retain top talent. Get to know him, and hear some of his wisdom.

Join us to learn the whole story!

“…really every small business owner should be thinking about these things. And… it's one of those things that nobody wants to deal with. It's easy to push off and easy to not think about.”

- Dennis Carlson

You Get What You Pay For

Dennis and I dive into the often overlooked aspects of executive benefits. We discuss the financial challenges businesses face when offering competitive benefit packages and explore alternative financing strategies to make these benefits more affordable. Dennis highlights the importance of finding a balance between cost and value, ensuring that businesses can attract top talent without breaking the bank.

Renaissance Man

We also touch on Dennis’s journey into the insurance industry, which began unexpectedly after a stint in the music industry. His marketing background played a pivotal role in his transition to insurance, where he built an employee benefits practice from scratch. Dennis shares how leveraging technology has been crucial in keeping ahead of the competition in an industry that is traditionally slow to adapt.

Human Capital

We get deep into the specific benefits that business owners should consider for their executive teams, such as life insurance, disability insurance, and retirement plans. Dennis emphasizes the need for benefits that cover the unique needs of high-earning executives. We discuss the significance of capturing variable compensation and ensuring comprehensive coverage. Dennis also explains how insurance can protect businesses from the sudden loss of key personnel.

“...it's for that individual employee who, that if something happened to them unexpectedly, sick or hurt, can't work or passed away unexpectedly… what would it cost the business to rehire, retrain… lost income because maybe they were one of the top salespeople?”

- Dennis Carlson

Want to get in touch with Dennis Carlson?

Email: dennis.carlson@marshmma.com

LinkedIn: https://www.linkedin.com/in/denniscarlson

Website: https://www.marshmma.com

Want to get in touch with Andrea Jenson?

Website: https://thecashflowcfo.com

Podcast: https://pod.co/the-cash-flow-cfo-podcast

LinkedIn: https://www.linkedin.com/company/the-cash-flow-cfo

Facebook: https://www.facebook.com/thecashflowcfo

Instagram: https://www.instagram.com/thecashflow.cfo

YouTube: https://www.youtube.com/channel/UC0kQopRCt9TEbgYjmqA4SMQ