How to Clean Up Your Financial Records and Polish Your Business

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MF Global misplaced $600 million.  How did that happen?

The business world runs on numbers. But not all businesspeople are great at collecting, storing, retrieving and publishing their financial figures. Each executive must decide what is best for their business. Either learn how to keep better financial records or hire someone to do it for you. Ignoring your financial records will come back to bite you at some point whether you are dealing with a funding source, the government or the legal system.

Several key stakeholders want to see organized, complete and timely financial information:

  • Your lender can become more confident about your business risk profile and be a better advocate for your loan application when it passes before the bank credit committee.
  • Bankers and investors seek out those prospects that are more creditworthy. This is especially true during financial crises when loan and investing underwriting gets tougher.
  • Your accountant appreciates access to complete financial records more than most stakeholders. Their job is much easier when they can prepare certified financial statements and tax returns using well organized financial data.
  • Your employees’ time is much better spent working on the business, meeting customers and generating sales than sitting through budget meetings with disorganized financial data.
  • Business leaders can navigate with greater confidence when they have complete and timely financial data to spot adverse trends within their industry and among their customers.

Bookkeeping and accounting services exist for the sole purpose of working with financial records. Business executives and owners can leverage their expertise to promote a better business life. The great thing about organized financial records and professional financial statements is the positive effect they have on your financial stakeholders.

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About Michael Shelton

Your Business Coach Facilitating Delegation and Work Group Engagement Michael Shelton has over twenty-five years of business and military accomplishments, including extensive experience with one of the largest, publicly traded real estate investment trusts (REIT). He is a qualified business coach with assignments in cross-functional work group management, strategic planning, unit leadership, joint venture acquisitions, executive education, mentoring, training and merger integration. Michael has accumulated best practices for building committed work groups from more than $4 billion of capital markets transactions and commercial property development. He served as a commissioned officer and helicopter pilot in the U.S. Army, and earned his MBA from The University of Arizona. Michael has served as a major conference panelist and is the author of Cash Flow Rich, Winning Ways to Evaluate and Finance Real Estate. Today, he helps business owners get more work group engagement as President and CEO of Shelton Business Services, LLC in Scottsdale, Arizona. Disclaimer: I don't offer investment, legal or tax advice. Talk to your broker, accountant or lawyer for investment, tax and legal help. I might own stock in the companies I mention on-line. My posts, tweets and other on-line activity are my personal thoughts and don't represent my employer or company.
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2 Responses to How to Clean Up Your Financial Records and Polish Your Business

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