The New Client
What’s the best way to on-board a new client to your business? What we do is try and understand a few things first. We love doing accounting and the things that aren’t necessarily core to what a company does.
So, we take on the not-so-fun stuff.
We look at these things:
- Trying to understand the current condition of a new client’s finances.
- Work on “cleaning up” their books.
- Setting things up so that they can run it themselves with our oversight.
- Training them to be self-sufficient
Every company brings on a new client in their own way. We choose to learn about what is going on currently, evaluate and report and then customize a solution for the clients’ specific needs.
Everyone in a company has a role or assignment. It is a good idea to make sure you know, as the business owner, who does what when and why.
When it comes to the financial people associated with your company, make sure you have the right person doing the right financial things for you. Usually, the roles look like this:
- A CPA is great to do your taxes and that is their frame of reference.
- Your bookkeeper does the day-to-day things including cash flow.
- An accountant pays a role with payroll and other related expense things.
- A controller is a strategist and looks at the bigger picture
By being an outside resource, we look at the bigger picture as a CFO as well as looking at all of the components and tactics.
Why should a business owner be concerned with inventory?
If you are selling a product, say online through an outlet like Amazon, you really need to pay attention to inventory. It has a direct impact on your bottom line and profitability. In keeping track of inventory, you should note:
- The count. Even if you only have five SKUs, it pays to keep an accurate count.
- Where it is. Is it in the warehouse or in transit?
- Is something missing? Account for every item.
Cost of goods sold is integral to the conversation around inventory. There is more to the cost to resell an item than the purchase cost of the item itself. You also need to at least consider:
- Shipping in and out of your warehouse.
- Other embedded costs like added items (accessories or replacement parts).
Systems and processes can help you control and manage inventory. An inventory control system like the feature in Quickbooks. Understanding quantity and volume of inventory is critical to controlling costs within your company.
- Have a system in place to account for inventory.
- Know the cost of goods sold of your product(s).
- Count everything!
Inventory is important to your consumer products company. Be aware!