The implementation and rise of automation has allowed for new techniques and processes to be created that improve efficiency, speed and the reliability of many manual, repetitive tasks that were once performed by humans. While increased efficiency, speed and reliability is great, automation, while varying in amount from country to country, is displacing about one third of human jobs. Per recent research by McKinsey, “about 60 percent of all occupations have at least 30 percent of constituent activities that could be automated.”1 While those numbers might seem large, the Covid-19 pandemic has only increased and sped up the transition to going digital. So, how does one remain relevant in the age of automation?
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Today’s business environment is changing more rapidly than ever before. It is becoming more and more uncertain, volatile and complex. The ongoing pandemic has disrupted most businesses in some way and many organizations are in a struggle for their survival. On the positive side, this has taught us a new way of remote working which seems to be a new normal now. While that is helping most organizations to save cost, it, too, has its own challenges which require different thinking and approach. CFOs are playing a key role in these uncertain times. About two decades ago, the skills required of CFO’s were largely about accounting practices, financial reporting, fiscal controls, compliance and banking. Today, to be a successful CFO you need so much more than that. Businesses today require them to be a business enabler who can play a strategic role alongside the CEO to grow the business while managing the uncertainties and creating value for all the stakeholders. Continue reading CFO – Are You Still Relevant?
In our previous blog, we talked about the second ingredient that you, as an SMB owner, should consider when reviewing the financial reports for your business – which was ‘Tracking Expenses.’ Now in this blog, we will delve into detail about the third ingredient to consider which is, ‘Accounts Receivable.‘
By definition, accounts receivable is the amount that is owed to a company by its customers. It is the sum of unpaid invoices, and is an important line item to note on your financial reports, Accounts receivables, like cash, are considered assets. However, unlike cash, high amounts of accounts receivables are definitely not considered good. If your company’s accounts receivable balance is large, that means you have a lot of money owed to you by your customers. A sharp increase in the accounts receivable line item on a financial can certainly be a likely indicator that the company is issuing credit to riskier customers.
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In our previous blog, we talked about the first ingredient that you as an SMB owner should consider when reviewing the financial reports for your business – which was ‘Profits’. Now in this blog we will delve in detail about the second key ingredient to consider which is ‘Expenses’, and why it is important for you to keep track of the expenses in your business. As it is rightly said that:
Expenses are not something to ignore or to add-on at the end, it is something to keep a track of from the beginning!
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In our previous blog, we discussed why it is important for a business to create financial reports. We also talked about 5 important ingredients that any SMB owner should consider while preparing the financial reports for their organization. In this blog, I will delve in detail about one of the most important ingredients of a Financial Report which is Profit. As it is rightly said,
Profit is not something to add-on at the end, it is something to plan for in the beginning
There are a lot of numbers you can look at in your financial reports, but what’s the bottom line? Well the fact is that profit is the bottom line – literally at the bottom of the most important financial report – your ‘Profit & Loss Statement’, or a ‘P&L’ as some call it. Profit tells you how much money you are left with after paying all of your expenses. This is a great place to check and see how your business is performing. If you take a look right now at your profit from the last 12 months, what do you see? Is it a big number? Or a negative number?
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