Keep What You Earn Financial Operations vs. Financial Management
In our last episode, I introduced this idea of having someone in your business that is responsible for financial operations. I wanted to expand on that and actually clarify the difference between financial operations and financial management in your business, because they are very different things.
Most business owners don't realize that there is a complexity to the financial side of your business. There's more to it than just tax preparation, bookkeeping, and hiring a CPA and thinking they're going to solve all the problems. There are two core functions, one is financial operations, the other is financial management or oversight.
The financial management and oversight is your strategy. It involves looking at your numbers and operations data and turning that data into decisions. Now, on the flip side, there's financial operations, this is your day to day; making sure we're collecting and paying all the money we need to and that we're recording it properly.
What you'll hear in this episode:
[2:30] The difference between financial operations and financial oversight.
[4:30] The breakdown of members on a financial team.
[8:00] The solution to your blind spots - financial management of day-to-day financial operations paired with financial oversight.
[10:20] What you need to do if you've never had a financial operations team before.
* Attend The CFO Accelerator Live: https://www.thecfoaccelerator.com/shannon
* Related episodes:
228. Setting and Measuring Progress Toward Your Business Goals
234. The Best Ways to Customize Your QuickBooks
236. How to Know if Your Overhead is Too Large
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The information contained in this podcast is intended for educational purposes only and is not individual tax advice. Please consult a qualified professional before implementing anything you learn.