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Natalie Cook - Finance And Accounting Are Different Things
Manage episode 337165987 series 2976614
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Natalie Cook of Cooper8 Strategies clears up the confusion on the difference between accounting and finance. Finance is really about strategy, deep thinking, and forward-thinking. Accounting is a numerical recording of your results and is backward looking. Instead of only reviewing financials sent by your accountant every month (which you should do), Natalie recommends taking out a notebook and pen every month and thinking through your revenue, expenses, and significant decisions for your business for the next three months. She advises asking questions like, Are you at max capacity? How many potential clients do I have in my pipeline? Are any of my clients at risk? What expenses can I cut or change? Review your financial history to see if you're reaching your goals (KPIs) and then take a step back to see if there's anything that needs to be adjusted.
Natalie states that a CFO should drive cash flow and reduce costs increasing EBITDA 1-2% at a minimum and for some 5-10%. She provides a 5 step process for using finance to help you run your business. Listen to the end for her gift to our listeners.
Show highlights
03:04 Accounting, bookkeeping, and finance are very different functions.
12:03 Introduce the finance function in the early stage of your business.
15:27 The importance of finance when taking in outside money (debt and/or equity).
20:32 Business benefits from having a finance function in your business.
22:51 5 steps to take to incorporate a finance function into your business.
27:56 Learn about Natalie. Email Natalie at natalie@copper8strategies.com.
Email Jay at jay.kingley@centricityb2b.com
Sign up for a free one hour workshop called Fast Track Your Way To A Thriving Consulting Practice. The workshop will show you how to replace the income you left behind in your last corporate job and then 5X it, get fully booked with clients at premium prices, and to have prospects chasing you so you can pick the clients and projects you want to work on while maintaining your revenues.
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