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Exit Strategy for Success NOW

Merager Financial Solutions Boulder Colorado

Exit Strategy for Success NOW

  ~ November 2019 ~

Welcome to the Merager Financial Solutions LLC newsletter. We're so happy you are here! Each newsletter provides a wealth of knowledge and inspires business growth.

Create financials that match what you say in words.

 

A business leader will describe their business, and the bank or investors will verify that by reviewing the only true record of a business: the financials. Make sure they are optimized to tell the true story of your business.

TIPS:
1. Show each entity in your business.
2. Show each product or service in your business.
3. Have sufficient detail so there aren't any questions.
4. Clearly show profitability by market and product.

Document contracts and clients.


Investors, bankers, and buyers will need to verify that all of the contracts and other documents are in place so that they can reduce their risk.

TIPS:
1. Have a central location for document storage.
2. Be able to show that you have every contract at hand.
3. Have a copy of the employee manual and every employee contract, which may include non-compete clauses.
4. Have a copy of every worker’s tax documents.

Do you have individuals that make or break the business?


If there is a key person in the business that should leave the business will fail, the business has no value other than the sale of the business in pieces. Avoid this trap.

TIPS: 
1. Document that a key person in the business has a successor.
2. Have non-compete clauses in key person employment contracts.
3. Create a documented business structure that avoids creating a key person.

Discover if a financial aspect of the business may change drastically over time.


For some businesses to remain valuable long-term, they need to stay at the same location. A rising rental market will affect profitability and the company’s eventual sale value.

TIPS:
1. Make sure that any long-term vendor contracts that will significantly increase in value are included in your financials.
2. Create a tax strategy so that depreciation and amortization are optimized for both current operations and that they are included in the final sales strategy.
3. Remain aware of the overall marketplace and the sustainability of each product and service.

​If you need assistance with anything we’ve discussed here, let’s talk so you can reach your financial goals, growth, and revenue. Spend your time doing what you do best and make more money by having us solve your most pressing financial issues.

Manage the Important Things

Merager Financial Solutions Boulder Colorado
Manage the Important Things

  ~ October 2019 ~

Welcome to the Merager Financial Solutions LLC newsletter. We're so happy you are here! Each newsletter provides a wealth of knowledge and inspires business growth.

Keep a close eye on your cash!

 

A thoughtful cash management strategy is critical as your company becomes more complex and profitable. Keeping a close eye on your company’s short- and long-term opportunities often separates an industry’s successes and failures.

TIPS:
1. Plan for regular operational payments.
2. Have sufficient cash during peak times.
3. Plan for capital projects, new product launches and new hires.
4. Take advantage of discounts, special purchases, and business opportunities.
5. Create a plan to secure outside financing at the best terms.
6. Plan to invest funds over long and short periods to maximize returns.

Ready for an audit? Are you protected from an embezzler?


To create a system that keeps your company safe, important documents should be immediately discoverable with little knowledge of any “system”.

TIPS:
1. Have the supporting documentation for each disbursement (purchase order, disbursement approvals, receipts, signing authority, etc.).
2. Have supporting documentation for every contract that has been signed.
3. ConsistentlyGet very organized people for clerical work (ask if they enjoy organizing their closet!) file legal documents such as deeds of trust and title for property.
4. Make sure that every record can be easily found.
5. Have a filing system that is scalable, easily understood, and consistent.
6. Use an electronic filing system that either automatically or periodically backs up your data to an independent and off-site storage location.
7. For transparency, provide access to all necessary leadership.
8. Make it a habit to always scan paper documents into your electronic system.

Collect all of the money you’ve earned!


Many companies have a culture of seeing “work done” as the point that the invoice leaves the shop, but the only meaningful indicator is when the invoice is paid.

TIPS:
1. Monitor your accounts receivable reports.
2. Follow up anything that is not paid within 30 days by emailing a copy of the unpaid bill.
3. Once a bill has aged 45-60 days, email the bill again and call the client to offer any assistance.
4. If a bill has aged more than ninety days without any outreach, a specific strategy needs to be implemented that removes all objections and creates a simple resolution for the client.
5. When creating your company’s budget, have a contra-asset account for bad debt that is reasonably close to the amount your company would write off each year (usually 2-5%).

Projects are how we make money!


A very powerful tool for any financial team to leverage for operations is clear and robust recording of project expenses and revenue. This type of recording helps leadership easily determine its return on investment (ROI). As important for management of that specific project, if managed very thoughtfully, each project can provide essential insight into future projects.

TIPS:
1. Create a project with business requirements, a review of expectations, identification of each required task and effort required, resource management, regular review with the client, and a clear close-out process.
2. Each project should be clearly defined for operational execution and financial results.
3. Have a regular meeting with the project manager and financial manager to review the results.
4. When creating the project, have a point where will company bail-out if profits, or revenue, stop meeting expectations.
5. Similarly, risks should be identified at the beginning of the project and reviewed at each project meeting.

If you need assistance with anything we’ve discussed here, let’s talk so you can reach your financial goals, growth, and revenue. Spend your time doing what you do best and make more money by having us solve your most pressing financial issues.

GOOD STAFF MAKES THE BEST THINGS HAPPEN!

Merager Financial Solutions Boulder Colorado
Good Staff Makes the Best Things Happen!

  ~ September 2019 ~

Welcome to the Merager Financial Solutions LLC newsletter. We're so happy you are here! Each newsletter provides a wealth of knowledge and inspires business growth.

Financials

 

These are the people that know how to budget, create proper books, create powerful decision support tools, work with government agencies, get your people paid, avoid fines, and generally make your life happier. Remember, every small business must have bulletproof books for at least three years in order to have any chance of getting a business loan, outside investment, or to finally exit from the business.

1. They will have expert knowledge of the newest applications to reduce costs.
2. They will get you reports that allow you to make those critical decisions with confidence.
3. They will reduce your end-of-year tax preparation expense.
4. Companies like ours will create a system but give you real control over your company.

TAKEAWAY: Not having expert help risks missed financial goals, higher risk of negligence lawsuits and even catastrophic failures that lead to shutting the business down.

Admin


These are the people that will take care of your business on a daily basis and are providing the critical staff and client support. They have best practices to create marketing campaigns, create correct client billings, hire the best people, resolve HR issues, how to bring new employees into the company, how to manage your calendar, how to resolve internal issues, and so much more.

1. They should be trustworthy, coachable, and competent.
2. Get people specifically trained in for HR and marketing.
3. Get very organized people for clerical work (ask if they enjoy organizing their closet!).

TAKEAWAY: Untrained business leaders trying to do it all will spend far time more learning and making mistakes than it would ever cost to have a professional complete the work. Their cost of incompetence will appear in fines and bad decision-support reporting.

Operations


This critical work includes scheduling jobs, precise timing of new material orders, creating high-performing project management schedules, managing those projects once they are underway, scheduling deliveries, organizing stock, and all the other day-to-day activities.

1. Competence for many of these specialized jobs take years of training, so don't assume free software will create an in-house expert.
2. Make sure there is integration with all of your operational controls and software, where possible.
3. Having detail-oriented people in these positions is critical.

TAKEAWAY: The more complex your operation, the more it is to have skilled and sophisticated operations staff. Awareness of so many theories, including queueing, scheduling, and defect tolerance will save untold headaches and financial losses.

Management


Management is one of those skills that seems effortless, and frankly, a waste of company resources until an incompetent person is placed in charge. Once a company becomes large enough, a wise leader will bring in bright, thoughtful people who can accelerate existing growth and bring new insight into the company vision.

1. Have a diverse management team, both with skills and professional backgrounds.
2. Have someone who can competently manage outside legal counsel.

TAKEAWAY: Everyone thinks they can be a manager. It's only once somebody has been a manager that they fully appreciate the massive complexity of pulling an organization together and making sure it is moving in the right direction. Get people that are smart, able to understand what's going on inside the company as well as outside the company, have the strongest integrity, and believe strongly in the company mission.

If you need assistance with anything we’ve discussed here, let’s talk so you can reach your financial goals, growth, and revenue. Spend your time doing what you do best and make more money by having us solve your most pressing financial issues.

Ideal Characteristics of a High-Value Company

Merager Financial Solutions Boulder Colorado
Ideal Characteristics of a High-Value Company

  ~ August 2019 ~

Welcome to the Merager Financial Solutions LLC newsletter. We're so happy you are here! Each newsletter provides a wealth of knowledge and inspires business growth.

Admin

 

Senior management should be leading the effort to have the following items in place well before an investment pitch (hint: a company should be run as if an investment, or exit, is right around the corner):

1. Professionally Prepared Financials and Tax Returns: Consistent with GAAP standards.
2. Clean and Accurate Financial Records: No questions are raised upon closer inspection.
3. Healthy Balance Sheet: No ticking time bombs.

4. Intellectual Property Protected: Make sure the IP can’t walk out the door.

TAKEAWAY: Any reasonably sophisticated investor or bank will require at least three years of solid financials and expect them to match the investment pitch. Also, engage capable attorneys to ensure that all-important intellectual property is protected so it can be added to the balance sheet as a long-term asset.

Operations


A competent COO will naturally have the following in place, but during an investment round, making sure that these assets are secure is critical:

1. Capable Staff in Place: For large companies, this is the C-level management.
2. Current Technology in Place: The technology should be both current and scalable.
3. Assets: Clean titles on assets that are also in good working condition.

TAKEAWAY: Build a business that values long-serving staff, where investing in the best forward-looking technology is the norm, and that title to company assets (capital assets, machinery, vehicles, etc.) are fully documented and insured.

Customers


Document either that customers are loyal over time or that transient customers are rapidly replaced by new transient customers.

1. Diverse Customer Base: This provides some assurance that the loss of a specific demographic won’t adversely affect the business.
2. Increasing Sales and Profits: The presumption is that the product or service has an increasing value, which is often due to more customers becoming aware of the offering.
3. Business Relationships Transferable and Documented: A company whose main source of value is their customer base must make assurances that the customers will remain with the newly-sold company.

TAKEAWAY: A company only has value if someone wants to buy its product or service, so demonstrating that the customer base is secure, even with a change external to the company, is critical to document long-term value.

Seller


For growing businesses, the founder is very often central to the operation and the most valuable asset of the company. For a company to achieve its greatest value, it should minimize any question about whether the company will continue at the same pace without their presence, or that the founder will stay on in a limited role for a set amount of time.

1. Seller Realistic About Sales Terms and Timeframe: A “hopeful” seller will often sabotage the sale.
2. Seller Able To Maintain or Improve Business Value During Sales Process: The buyer wants assurances that any sales and revenue trends are fully transferrable.
3. Seller Motivated To Sell: If the seller isn’t all-in to make the sale, then they should consider waiting until they are more committed.
4. Business Not Reliant On Seller: If a company’s owner is also one of its greatest assets, selling the company becomes almost impossible if a successful sale mean the owner will be walking out the door.

TAKEAWAY: A buyer of a business is buying a revenue stream, and the more assurances they have that the revenue will remain as expected will drive up the sales price.

If you need assistance with anything we’ve discussed here, let’s talk so you can reach your financial goals, growth, and revenue. Spend your time doing what you do best and make more money by having us solve your most pressing financial issues.

Make Expenses Work For You!

Merager Financial Solutions Boulder Colorado
Make Expenses Work For You!

  ~ July 2019 ~

Welcome to the Merager Financial Solutions LLC newsletter. We're so happy you are here! Each newsletter provides a wealth of knowledge and inspires business growth.

Simplicity

 

The absolute key with any system, financial or otherwise, is to make it as simple as possible.  The gold standard is if someone with reasonable intelligence can come into your company and understand what’s being reported and can independently access similar data results.

1. Use an accounting system that automatically downloads your transactions.
2. Your bank may have a budgeting system that automatically categorizes your transactions, so no further work is needed (note that the categorization may not fit your business, so don’t let it go completely on autopilot).
3. Avoid using a spreadsheet that must be manually updated – it will become too time-consuming and will be abandoned eventually.
4. Once your company becomes sufficiently complex, hire a competent bookkeeper, so you have reliable financial reports to run your business.

TAKEAWAY: If you find yourself especially encouraged (or even overwhelmed) by some aspect of your business, get in touch with Merager Financial Solutions for an inexpensive review and strategy session.

Use Apps


We are living in amazing times where applications can do much of our repetitive work and with more reliable results. The key is to have really good integration between different apps, so your data isn’t scattered, or even far worse, providing you with varying results between systems.

1. We’re a big fan of QuickBooks Online for many reasons and can help you get a 50% discount for the most basic version for the cost of a couple of cups of coffee a month.
2. Depending on the complexity of your company, using a bill payment system can make a lot of sense.
3. If you’re sending money internationally, there is one system that we would love to introduce you to that is incredibly convenient and the fees are sometimes 90% LESS THAN your bank.

TAKEAWAY: If you have a technology need, get in touch with us for a quick chat with absolutely no obligation. Frankly, we’d love to connect with you again, and this is a great excuse!

Direct Purchases                        

Reimbursements should be a rare event so that employees aren’t burdened with interest-free loans to their employer. It’s also important to note that processing reimbursements are typically very expensive in staff time, so there is a direct cost for what initially seems like an easy solution.

1. When reimbursements are necessary, we can recommend a few reimbursement systems that integrate directly into your accounting system with a mobile phone apps.
2. Where logistically possible, the employer should purchase items directly from vendors or provide an employee with a debit or credit card to make purchases.
3. Creating a direct and substantial purchasing history with vendors creates an opportunity to request an ongoing discount.

TAKEAWAY: Use your company’s purchasing power to your advantage by having it all visible and leveraging a positive working relationship with a vendor to help both of you.

Monthly Review


Having a budget has so many advantages, but the ability to compare what you thought your company would do and how things actually played out is pure gold. Seeing the results of real-world decisions compared to what we reasonably believe will happen leads to wisdom, which leads to growth.

1. Review your expenses each month with your bookkeeper if your company is safe, but not growing in the near future.
2. If your company is growing, or set to grow, review your budget vs. actual numbers with your CFO so the growth can sustainably continue.
3. At the end of each monthly review, identify any new expense categories that have become significant and should be highlighted by themselves on future profit and loss reports.

TAKEAWAY: For every expense, make sure that it has a return on investment (ROI) for the company or classify it as an Owner’s Discretionary item that can be quickly identified if funds are needed immediately.

If you need assistance with anything we’ve discussed here, let’s talk so you can reach your financial goals, growth, and revenue. Spend your time doing what you do best and make more money by having us solve your most pressing financial issues.

What is a healthy company? Part II

Merager Financial Solutions Boulder Colorado
What is a healthy comany? Part II

  ~ June 2019 ~

Welcome to the Merager Financial Solutions LLC newsletter. We're so happy you are here! Each newsletter provides a wealth of knowledge and inspires business growth.

Delegation is normal

 

Once a company has sufficiently matured, it realizes that the best way to get things done is to have the best people do the work. Mature companies also have a significant amount of work to do, and thoughtful leaders understand that they should focus on their expertise. The world has changed, where extraordinary and competent people create professional-grade results for small businesses in their own area of expertise and only charge only for time spent on task. Offloading these technical and creative tasks to professionals is often the best decision.
TAKEAWAY: Every person has a talent that is most valuable to a company and their time should not be used to solve less expensive needs.

Actively managed costs 


While it is a milestone for any company to create a profit for itself, sometimes the most challenging task is to manage costs. The best way to do this is to have accurate reports that are created by a competent CFO and reviewed by management at least monthly for opportunities, waste and budget vs. actual spending. We should also make a point to revise vendor contracts whenever possible. Explore reducing expenses such as duplication, overhead, change billing to longer periods, and look into deductions for early payments. Some vendors may be willing to provide the same service at a lower cost if their contract is more secure or more business is promised. On the other hand, there can be the temptation to move from a trusted vendor that charges more to a lower-cost vendor who is not reliable and that may lead to a trusted vendor parting ways.
TAKEAWAY: Vendor management is a crucial management obligation and opportunity.

Bid management                  

Bid management is a function of both long-term data, an in-depth knowledge of the marketplace, very detailed business requirements from the client, and an understanding of project management. While working with bids, set the expectation that there may be overages. There may be an increase in material prices and that vendors naturally include a profit margin. A properly managed project can leverage knowledge about how to do something based on past work experience and very often a company that has specific, in-depth knowledge about a deliverable is in an excellent position of charging based on the value that they bring to the potential client. It's important to remember that the potential client may perceive a higher-priced bid as a higher quality deliverable.
TAKEAWAY: Use historic data to create high-profit bids by leveraging your company’s expertise, industry knowledge, and pricing sophistication.

Minimal stock on hand


Stock on hand can become an afterthought to the companies that have the mistaken belief that they need every single item on hand at the exact moment that somebody needs it. A successful company understands that an immediate need for an uncommon item can translate to a higher price. That said, there are certainly some business types like hardware stores that must have several combinations of each item on hand, but the opportunity there is to track the “time on shelf” for each stocked item and keep only enough where the time to sell least amount on-hand equals the amount of time to have new stock shipped in.
TAKEAWAY: Minimize stock to absolute minimums and use working capital to grow the business.

Exit strategy planning


One of the best ways to start a business is to organize with the idea that the business could be handed-off to a third party and it would continue with the same increasing profits. Bringing procedures and policies into a company/employee handbook creates an environment where at any time, financing can be secured, partners can invest with confidence, or the business can be sold outright.
TAKEAWAY: An exit strategy is more of a state-of-mind than a plan of action. Value is created when a company has a business continuity plan that clearly reveals its revenue stream.

If you need assistance with anything we’ve discussed here, let’s talk so you can reach your financial goals, growth, and revenue. Spend your time doing what you do best and make more money by having us solve your most pressing financial issues.

What is a healthy company?

Merager Financial Solutions Boulder Colorado

What is a healthy company?

  ~ May 2019 ~

Welcome to the Merager Financial Solutions LLC newsletter. We're so happy you are here! Each newsletter provides a wealth of knowledge and inspires business growth.

Companies that seek overall health are the ones that not only survive but go on to even better things and create opportunities that would never appear otherwise.

 

The first attribute of a healthy company is that it has a stable roster of clients or steady sales of its product or service. This typically means that the company has a product or service that is valued by its customers and they choose to do business with that company. The challenge at this stage is never to presume customer loyalty or that their product will continue to be desirable.

Stable revenue is another attribute that ties in with steady sales, but the accounts receivable and accounts payable must be watched very closely. Uncollected bills are lost profits, and unmanaged vendors happily take inflated fees from clients.

Having a budget is a next-level indicator of a healthy company, and a cash projection is a natural extension of a budget. Beginner companies are satisfied with merely knowing where they presently are, or worse yet just making sure they don’t overdraw their checking accounts, but the real power comes from knowing how much growth potential a company has and leveraging all of that potential. A beginner company also incorrectly believes that staying in the same place as “we can pay the bills and put some money in our pockets(!)” is safer than reaching for the next level, but the companies that search for long-term success know that stopping in the middle of the road will surely lead to being run over.

A company that expects that it will naturally grow is healthier than one that remains stagnant. We know from practically everything else in the universe that there is only growth or entropy and the same holds for business. Just think of that store that you walked into that hadn’t been updated in twenty years and how your regard for that store immediately dropped to one of possible suspicion of their offerings (maybe you look if the milk is out-of-date or expect horrible customer experience?).

Having solid books is not only the exclusive way for a leader to understand their company’s position, but it creates opportunities to exit the business at some point. Did you know that a company needs three to five years of rock-solid financials before any investor will even look at a company for purchase? Even if there is no plan right now to sell one’s company, there must be planning for that, even if that preparation is used to secure an emergency line of credit from a commercial lender.
 
This one is more for a company that deeply understands itself, but every healthy company is hungry to provide a desirable service, create new offerings and remain a leader in their industry. This comes from the correct understanding that taking the foot off the accelerator will eventually lead to decline.

We will continue with attributes of a healthy company next month, or you could contact us directly and get those answers immediately!


If you need assistance with anything we’ve discussed here, let’s talk so you can reach your financial goals, growth, and revenue. Spend your time doing what you do best and make more money by having us solve your most pressing financial issues.

Profitable Bids and Project Management

Merager Financial Solutions Boulder Colorado
Profitable Bids And Project Management

  ~ April 2019 ~

Welcome to the Merager Financial Solutions LLC newsletter. We're so happy you are here! Each newsletter provides a wealth of knowledge and inspires business growth.

Long-Term Bid Awareness

 

We often think of creating a bidding process as something that will help with current project bids. Though that’s clearly an important benefit, the primary benefit comes over time when we have a history of bids to reference that allows us to see our patterns of successes and errors, so that we can adjust future bids for greater accuracy and profitability. The best project management systems, for current and future uses, track each of the critical tasks for a new project. By creating a project that includes every task and all dependencies (one task must be completed before another task can start), we can schedule each task, move dependent tasks if a previous task is delayed, and calculate costs for delays or bonuses for finishing ahead of schedule.


TAKEAWAY: Planning in advance, with the correct amount of detail, guarantees greater profitability.

Creating a Bid and Managing a Project


As a business strategist who’s also a certified project manager, here are my top ways to create a successful bid and manage a project:
1. Business practice
     a. Record as many projects as possible
     b. Keep detailed and accurate records

2. Creating a bid
      a. Get accurate business requirements
      b. Get your bid team together to create an accurate list of tasks to complete the project
     c. Record the cost for each task
     d. Create task groups, where appropriate
     e. Negotiate for on-time bonuses
     f. Negotiate to remove time slippage penalties
     g. Include the profitability based on value added
3. Project management
     a. Create a project plan with accurate dependencies
     b. Assign each task to a person or team
     c. Keep track of time worked by requiring daily or weekly time recording
     d. Review progress often, both financially and operationally
     e. Update the project plan often for accuracy, with an eye to removing dependencies
     f. Create incentives for workers to meet deadlines
     g. Understand present profitability


TAKEAWAY: Strong project and cash management gives us correct opportunities to reward workers as they create additional value (finishing work early, doing demonstrably better work or finding a better approach) while ensuring that the project’s profitability remains solid.

Each Task in a Project Has Its Own Profitability


Project management is clearly an important part of making sure profitability is as great as possible for a company, but cash management within the bid makes profitability possible. If we have done our project
management work correctly, we will know the profitability of each completed task. We can also know who our key workers are on the project, make sure that their efforts are properly rewarded, and we may have the additional opportunity to recognize top people that can serve as leads, and mentors, to bring up the overall productivity now and in the future.

TAKEAWAY: Don’t have people standing around getting paid while bonuses slip and penalties loom.

If you need assistance with anything we’ve discussed here, let’s talk so you can reach your financial goals, growth, and revenue. Spend your time doing what you do best and make more money by having us solve your most pressing financial issues.

Admit Success And Prosper

Merager Financial Solutions Boulder Colorado
Admit Success And Prosper

  ~ March 2019 ~

Welcome to the Merager Financial Solutions LLC newsletter. We're so happy you are here! Each newsletter provides a wealth of knowledge and inspires business growth.



I’ve seen so many businesses that are on the brink of greatness and only need the company leader to see that greatness. Staying small is a powerful self-fulfilling prophecy. 

When should your company break free? Here are several indicators that your company is well positioned for expansion:

1. You have clients waiting for your company’s services.
2. You have a complex business model that would be difficult to replicate.
3. Your clients trust you, so you have many long-term business relationships with them.
4. Your product or service is appreciated by clients.
5. You expect your marketplace to change soon and provide a unique opportunity.
6. You have solid business practices that are strictly followed.
​7. You have responsive customer service.
8. MOST IMPORTANT: You have a complete understanding of your company’s financial resources (both quantity and quality).

If you see your company in any of those indicators, you are in elite company. You’ve provided a desirable product and have been a reliable business resource for your clients. They like having your company around!  

TAKEAWAY: Further success is only possible if you hire other experts to take on the increasingly complex aspects of your company. Having a financial strategy is absolutely essential, and we are here to help you make that happen. We can create this for you right now!


Tips for Success


Tip #1

Every business owner should always know which products or services are making the highest NET profit. To know true profitability, every relevant aspect of the business should be integrated into product profitability. This includes machinery, marketing, staffing and the materials themselves.

Tip #2

Your financial reports are your most valuable asset as you grow your business. Knowing where you’ve been is the secret sauce to understanding where you can go. Having a budget and cash projection are the keys to discovering where you can go.

Tip #3

Will you ever need a business loan, seek investors or want to sell your business? If so, having at least three years of reliable financials that match the story that you’re telling these financial professionals is a requirement. The deal will stall, or not go anywhere if these aren’t in place. Hint: They will ask for your tax returns and financials for those years, and they should match.



Delegation is critical


As each company grows, the type of confidence needed for success changes.  The confidence that serves the beginning company is much like an explorer, where the search is one of matching the company with clients that need that specific product or service.  Once we have a solid company, we need the confidence to fully embrace the larger market that clearly needs this same service or product, but we must shed the thought that we can do everything in a complex organization.

TAKEAWAY:  We can manage the financial side of your business while you create growth and make even greater profits for yourself.

If you need assistance with anything we’ve discussed here, let’s talk so you can reach your financial goals, growth, and revenue. Spend your time doing what you do best and make more money by having us solve your most pressing financial issues.

Just a bookkeeper

Merager Financial Solutions Boulder Colorado
Is your bookkeeper a storyteller?

  ~ February 2019 ~

Welcome to the Merager Financial Solutions LLC newsletter. We're so happy you are here! Each newsletter provides a wealth of knowledge and inspires business growth.

Quick question: If you were asked to to fully describe your business, would you be at a loss for words?

Most business leaders would be, because there are so many moving parts. Vendors, clients, expenses, income, long-term liabilities, assets, business loans, aspirations, employees, taxes... The list could go on almost endlessly.

Here's the thing: Your business' story should already be captured in your financials. Wait, you might say. My financials are just a bunch of numbers that make my eyes roll up into my head... The truth is that if your financials are crafted correctly, they should tell the tale of your company with the same clarity that you could say in words.

If you ever want to sell your business, get investors in, convince a bank to give you a loan or even just know where your business is at the moment, you need a well-crafted set of books that accurately tells your company's story.

TAKEAWAY: Your company's books are its story. It's just told with numbers as placeholders for the human story behind them.

A bookkeepers job

Bookkeepers should double-check for any unusual transactions, enter any complex accounting entries, reconcile the bank accounts and keep a watch to not overdraw the company checking account.

Bookkeepers are not responsible for advising a company leader on *how* to use the resources in place and will typically choose to not affect the course of the company with the big picture. The bookkeeper's "lane" is typically quite narrow.

So you want to launch a new product?

Maybe not today, but someday you will. Make sure you have the knowledge infrastructure in place well before you need it.

Tax time, eh?

As you move through the year, keep in the back of your mind that tax season can be painful. Or it can be as easy as turning over your books and the tax part is just a matter of putting it together. 

TAKEAWAY: It will cost much more to have a CPA fix mistakes at tax-time than to have it done well during the year. Use that money for a nice dinner out, instead!

If you need assistance with anything we’ve discussed here, let’s talk so you can reach your financial goals, growth, and revenue. Spend your time doing what you do best and make more money by having us solve your most pressing financial issues.