“Have you ever in your business, thought to yourself, hmm, “Can I afford that in my business?” Well, let me tell you, if you have a dialed-in budget and a forecast, you will know at a moment's notice whether or not you can afford that.”
-Andrea Jenson
Today we are throwing back to one of our favorite videos from 2022. The question so many business owners find themselves asking… “Can my Business Afford That?”
From deciding about a new hire to purchasing new supplies, you have probably asked yourself this question before. A structured budget and cash flow forecast can help you decide. But there is one piece of the puzzle that might be missing. Andrea reveals what that missing piece is.
What is the Missing Piece?
I know a lot of business owners, and you're probably saying, “Hey, I have a budget, I have a forecast. I still don't know if I can afford that.” Well, let me tell you what the missing piece is.
The missing piece is somebody on your financial team that is tracking how much you've spent and how much is left in each of your budget categories. As a business owner, you should have a financial team that you could shoot off a message to and immediately know if you have room in the budget.
The solution is at the beginning of the year you set with your financial team and with your CFO your revenue goals and your profit goals. Then your CFO says, Let me go and create a budget for you. We'll review that together and we will set the budget for the year.
Want to get in touch with Andrea Jenson?
Website: thecashflowcfo.com
YouTube: https://www.youtube.com/channel/UC0kQopRCt9TEbgYjmqA4SMQ
LinkedIn: https://www.linkedin.com/in/andreamjenson/
The Cash Flow CFO Podcast
Hey everybody, welcome to The Cash Flow CFO podcast, the show that explores the financial side of running a business for people who want to maximize profitability and scale with confidence.
If you want to make smart financial decisions based on data and put more of your hard-earned profits into your pocket, this is the podcast for you.
The Cash Flow CFO Podcast is brought to you by The Cash Flow CFO. Did you know that, on average, business owners have up to 84% of their personal net worth tied up in their business? Our team of virtual CPAs and CFOs, as well as accounting and bookkeeping experts empower business owners just like you to make big leaps that help them maximize profitability and scale with confidence.
Visit thecashflowcfo.com for more information, and thank you for listening.