How many emails have you received in the last couple weeks about 2018 goals? If your inbox is anything like mine, the answer is too many. Frankly, I almost started writing an email about setting your 2018 goals until I realized that if you’re a high achieving, world-changing leader (which I know you are!) you’ve probably got those goals and strategic plans written down and committed to memory already. So instead I want to share the one thing I believe is critical to making sure you’re set up for success next year.
A financial deep dive.
I’m talking full review of historical financials and mapping out revenue, expenses, and cash for the next year, because…
Past + Future = clarity like you’ve never had before.Now, this is usually the first thing I do with new clients who hire me as their ongoing CFO. But I’m super excited to announce that I will be adding this financial deep dive as a one-time project offering too! (If you know any nonprofit leaders or entrepreneurs who could use an expert set of eyes into their numbers, please send them my way; it would mean the world to me.)
This is not a job for your bookkeeper or tax accountant because this has little to do with debits, credits, or the IRS. A financial deep dive entails reviewing several years of historical financials and pulling out trends and areas for opportunity. It’s calculating financial ratios, not for the sake of it, but to better understand how your organization operates in reality versus your perception of operations.
For example, I worked with an organization who was perpetually in a cash crunch. They had plenty of revenue and it seemed like checks were hitting the mailbox every day, but a review of their financials showed that it took an average of 82 days to collect on receivables! With this info, we were able to revamp their collections process, reduce the time to collect, and increase cash balance in a matter of months.
See what I mean? Not your average bookkeeper-type stuff.
As you close out the year in the coming weeks, I wish you the time and energy to think big and think deep about next year. I am inspired to work alongside a group of passionate, mission-driven leaders and wish you the best in the New Year!