There is an old Sales saying that “Nothing happens in a business until something is sold.” Well, there is also a saying in the Finance and Accounting Outsourcing Sector (FAO) “Nothing happens until something is sold, but not much more happens until the Back Office processes are set up and working well.” A business owner could go along gathering customers and managing their cash out of the left pocket and into the right. Yet, they won’t be in business long or reach the maximum potential until finances are being managed and business cost are understood. Many small business owners can manage their business intuitively, but in order to grow it to a sizeable entity, the owner must get the Finance and Accounting activities out of their heads and into a structured process and managed by a focused resource. That is were FAO services come in. One way a small business can continue to grow and keep their financial concerns in order is to outsource their FAO service until the business grows large enough to bring the activity in house. But don’t be to quick to outsource without doing the necessary research.
One of the mistakes business owners make is thinking their bookkeeper can also be a FAO resource. Bookkeepers and finance Managers are not the same thing. This is like saying a Dove and a Falcon are the same kind of bird. Yes, they both have mastered flight, but when you are on a hunt, which “bird” would you prefer to have with you?
When you are hunting for cash flow improvements, investor dollars or small business loans make sure your FAO resource is a Falcon and not a Dove. Finally, make sure your FAO resource understands your industry and business objectives. Raising money and managing money often require different skill sets.
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