News19.02.2020

Knowing Your Financial Data

In recent months I have met with numerous Entrepreneurs, Start-up / Small Business Owners, and Management Teams about the type of data or lack of financial data that they received from their outside financial services company.

In general, I constantly hear the same talking points raised by all of
these individuals:

  • I receive very little information about my business other than a
    simple Profit and Loss Statement,
  • The Accounting / Financial Service Company does provide
    accurate work papers, and we always find errors with the
    information that they submitted to the tax authority,
  • We never receive any information from our Accounting / Financial
    Service Company,
  • We are such a small company and the Accounting / Financial
    Service company has so many clients that they just don’t care
    about our business,
  • We have been using the same Accounting / Financial Service
    Company for years, and the business is stuck with bookkeeper that
    does care about our finances,
  • The Accounting / Financial Service Company has high employee
    turnover and they don’t know our business,
  • The Accounting / Financial Service Company always files our taxes
    late and the business is always paying late fee or fines,

You would think that with all these points listed above plus poor
customer service, minimal financial reporting, and a lack of concern
for client would be reason enough to change financial service
provider. Not So!!!!!

Why is it the case that entrepreneurs, start-up / small business
owners, and management teams are willing to put up with the poor
quality of service from the Financial Services Industry?

Accountability

Too often Business Owners, Entrepreneurs, and Management Teams
don’t “Know Their Financial Data” or have never worked closely with
Accounting / Financial Service Company that cares about the
health of their business. Finding and developing a solid business
relationship with Accounting / Financial Service Company that will
interface with your business is not only essential to a business, but
with the ever-changing economic environment it a critical that for
the success of any organization.

When business owners work closely with Rocket Office, they receive
financial statements that provide a picture of how current business
models is running and whether they are profitable. Good Financial
Statements can include information on capital expenditures,
business income, business trends, cash flow, company balance
sheets and how cash is handled. As a Business Owners,
Entrepreneurs, and Management Teams, there are a variety of
reasons why it is important for you to constantly analyze your
company’s financial statements.

In the Nordic region most small businesses, startups, and growth
companies contract with third party accountants / tax advisers (i.e.
Financial Services Company) that manage the accounting record
keeping and ensure all financials are reported to the government
timely.

As a Business Manager / Owner, it’s critical to analyze your
company’s financial statements, manage your clients, market the
company’s product(s), develop new markets, and handling other
internal issues. If you don’t have the time to carefully investigate
and analysis your financial statements every month then your
business should consider partnering with back-office professional
like Rocket Office that can leveraging these functions for your
business. Rocket Office can verify that all financial and non-
financial information are correct, monitoring such things as cash
flow, capital expenditures, and payroll for the business. Rocket
Office will create and deliver precise financial reporting and that
can be used to monitor the long-term health of the business.

Financial Decisions

While financial statements themselves can’t make the ultimate
business decisions, they can paint a picture of the overall health of
your company. Having a back-office business partner that reviews
your financial data and provides additional business intelligence in
the form of:

  • Key Performance Indicators (KPI’s)
  • Business Ratios
  • Charted trend analysis over a period of 24 to 36 months
  • Actual to Budget variance analysis with indicating trend
  • Other market indicators related to specific industries

Armed with professional financial information Business Owners can
then discern the best decisions or course of action for their
company. The best management decisions are always made
based on solid financial statements and other business intelligence
is provided by a professional partner. For example:

• Financial statements point to an overlap of departments that is
cutting into your business’s bottom line,
• Business trend are able to indicate possible increase or decrease
in economic activity,
• Key Performance Indicators are able to evaluate the ROI from
various capital projects,
• Other financial reports provide to investors with a baseline of
analysis for comparison between the financial health and the risk
providing additional investment.
• Reports that assess the solvency, liquidity, and creditworthiness of
businesses.

Outside Looking In

Investors use the information from financial statements to make
decisions about the valuation and creditworthiness of a company.
Companies that don’t having well developed financial statements,
reports and other business intelligence makes it much more difficult
to engage with investors. Having a back-office business partner
that collects, investigates and reports operational data each month
makes it easy to keep investors well informed. Investors that see
how their funds are being allocated and can evaluate the return on
their investment and are more likely to continue to support
additional investments.

The Bottom Line

Having a back-office partner like Rocket Office that supports your
business with solid Financial and Accounting information is the best
way for businesses to keep track of the overall financial and none
financial health of any organization. Having a back-office partner
like Rocket Office provides data through a variety of statements
including the balance sheet and income statement, analysis,
trends, and other business intelligence is the best way that a
company can give investors and lenders more power in their
decision-making for the long run. Business Owners, Entrepreneurs,
and Management Teams that “Know Their Financial Data” are able
to make sound business decisions that will enable them to grow
their organization.

Something about Rocket Office:

Rocket Office is a full-service Financial Service Company with
operations in Espoo and Turku. The company.

At Rocket we think that entrepreneurs are the heroes creating better
future for the humankind. We enable them to focus on their
business by leading their support functions.

Time is the most valuable asset of an entrepreneur – we are the
back-office partner who proactively offers solutions to problems
entrepreneurs shouldn’t spend their time on. We are not expecting
the customer to know what they need. Instead, as an integrated
part of the customer’s team we are driving their company in back-
office functions proactively, making suggestions, sharing best
practices and acting as a business partner.

If you want to upgrade your Accounting and Financial Reporting or
if you are looking for a back-office business partner that cares
about your business, then feel free to contact us to see how we can
help your business.