Every business owner should be prepared to answer at least these three top questions about the financial health of their company. Every key executive needs to be able to ask critical questions of their CFO.
- What’s the budget and how is it performing against actual expenditures?
- How is the company performing operationally? How is it connected to accounting?
- What’s between profit and EBITDA?
By understanding budgets and their performance, you can keep the company on track and out of the red.
By continually monitoring processes, you can see what is working and what isn’t and make adjustments. You can see the tie of finances to day-to-day functioning of the company.
And by knowing what is the “meat of the sandwich” between profit and EBITDA, you can see opportunities and pitfalls within your finances as they relate to the company.