Show me the money!
Do you want your employees to contribute to your companies financial goals? We have pondered this very question when conducting our own financial statement analysis and how each employee sees themselves as part of the bigger picture. Look no further than your financial statements for the answer. There is key data in your reports that can be broken down to enlighten and motivate your staff to a better economic outcome for your business.
Cash-flow statement: Accounts Receivable
One way to protect your cash-on-hand in your business is to collect outstanding receivables. It is important to discuss with your accounts receivables group what your goal is for collecting on outstanding debts. Quite often, the business emphasis is on the ‘top line’, i.e. sales. However, collecting on these sales requires as much, if not more, attention to ensure positive cash flow.
Income statement: Bonus/Incentives/Profit Sharing
This is the part of the financial statement that determines the “healthy picture” of your business. Bonus plans are a good way to incentivise your performing team and demonstrate the “healthy picture” of their company based on the their hard work. There are many ways to structure bonus, incentive or profit sharing programs. Visiting with an experienced CPA, CFO or HR Professional is a good idea to design a plan that best suits your organization.
Balance sheet: Talk with your accountant
This is an area of your business that is key to knowing what assets you have, compared to your current liabilities. The difference between the two will result in seeing your shareholder’s assets or profits to that of the owners. Decisions you have made or need to make that affect the liquidity of your business are recorded here. Meeting with your accountant is key in determining the right time to sell timed assets without losing value to the company.
Knowing more about your financial statements can not only tie-in the overall contribution by your employees but you can also improve the understanding of the future of your company and where it is headed. An experienced Tulsa accountant is a valuable asset. More importantly, recent trends have suggested that reasons for outsourcing accounting needs are on the rise and a smart decision by business owners and executives to bring in top-talent from local agencies. Consider your options to make the best impact for your group and look for support in your local business community.