Blaine Bertsch | Operational Cashflow & Future Forecasting System

Step 1: Hire a financial advisor.

• Start out by hiring a professional.
  • Coaches
  • Accountants
  • Bookkeepers
  • Controllers

• Finances might not be your area of expertise so having a professional help you out on this aspect means a lot to your business.
  • It also frees up a ton amount of your time to focus on things that you should really be working on.

• Professionals help you out by ensuring that the data in these cloud-based systems are reconciled and up to date.

Step 2: Pick the right software.

• Get on with a cloud-based system or a cloud-accounting tool.
  • The professionals will set up systems for your business.
  • It is highly efficient especially when you’re managing all the scattered data and numbers in your business.
  • Getting a cloud-based system will ensure that you’re always on top of those data. You may also make use of it.

• Some examples include:
  • Xero
  • Quickbooks

Step 3: Do a regular check up on your business financials.

• As your business expands, it is important to have someone focused on looking at your company’s financial situation.
  • The minimum checkup is every week.
  • Try to understand what is happening in your business in terms of finances.

• Here are some of the essential points you should identify when you’re checking up with your financials:
  • Get control of the near-term cashflows.
  • Do you have enough money to make payroll?
  • Do you have enough money to get you through the month?

• You should focus on getting to know these points before moving on to the longer frames.

• This step helps you take control over risks while lowering them at the same time.

• The data you’ll extract on this step will give you hints on the following:
  • When is the best time your business can expand?
  • How would your business expand?
  • When should you hire?
  • When can you take on bigger opportunities?

• Do your review on a daily, weekly, monthly, and quarterly basis.

• Have a weekly action list.
  • Consolidate all your invoices and bills.
  • Categorise each based on their due dates.
  • It helps you understand which requires the most urgent attention.

• Have a monthly action list.
  • Look and monitor your sales pipeline.
  • Try to forecast seasonal changes that can have an effect on your business.

• In general, the cadence of this will still highly depend on the size of your business.

• As you get accustomed to this system, it will open your eyes up to other essential things worth noticing for your business.

• Quarterly / Annual action list.
  • This gives direction to your business.
    • Where do you plan on taking your business?
  • It provides a longer-term outlook in your business.

System Notes

• Acknowledging and studying the finance status of your business will help you analyse and give direction on your business finance in the future.

• Don’t dismiss the past because this is where you can learn from.

• Get people to help you build a system that makes sense to your business as a starting point.
  • It doesn’t require to be perfectly laid out at the beginning.
  • Make sure you do regular touchpoints.
  • Do not drop off. Keep it going.