EP 187: “Small Biz Money Moves: CFO Tips for Big Impact”

Money & You with Michelle Perkins

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16d ago 47:16

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In this episode of the "Money & You" podcast, guest Jayson Mamaclay of Norman Professional Services and Michelle Perkins discussed the critical distinctions between various financial roles within a business, including accountants, bookkeepers, and CFOs. They emphasized the importance of understanding these roles to enhance financial literacy among entrepreneurs, particularly in managing and growing their businesses. The conversation highlighted how many entrepreneurs mistakenly conflate these roles, leading to potential mismanagement of financial tasks.
The discussion underscored the necessity for business owners to seek expert help, such as hiring a CPA or a fractional CFO, especially as their companies grow. Jayson introduced the "add a zero rule" to guide when to engage these professionals based on revenue levels. They also touched on the importance of building cash reserves and strategic financial planning to support business growth and stability.
This episode is significant as it provides entrepreneurs with essential insights into financial management, helping them make informed decisions that can lead to sustainable business success.
00:03 - Understanding financial roles
15:06 - Strategic cash management insights
21:19 - Building cash reserves wisely
30:46 - Envisioning your business future
40:58 - Navigating debt for growth
The conversation highlights that an accountant typically focuses on tax strategy and financial oversight, while a bookkeeper manages day-to-day financial transactions. The CFO, on the other hand, plays a strategic role in guiding the business's financial direction and investment decisions.
The podcast helped entrepreneurs understand how to approach hiring financial professionals.
The podcast suggests using the 'add a zero rule' for hiring financial professionals, andwhat is meant by 'cash runway' in the context of business financial planning. The podcast emphasizes the importance of having a cash reserve to support the business during downturns, and why it is important for entrepreneurs to have a clear vision for their business's future.
The podcast stresses that having a clear vision helps entrepreneurs identify the financial levers they need to pull to achieve their goals. It encourages them to think about pricing, target markets, team size, and necessary resources to build the business they envision.
The podcast acknowledges that financial discussions can often feel intimidating or jargony. It emphasizes the importance of friendly and empathetic communication to make financial concepts more accessible and less scary for entrepreneurs.
Key Takeaways:

Role Clarity: Entrepreneurs should clearly understand the distinctions between financial roles to optimize their business operations.
- Strategic Financial Management: Engaging with financial experts can provide valuable insights and help businesses navigate growth challenges.
- Cash Management: Building a cash reserve is essential for long-term sustainability and investment opportunities.
- Future Planning: Taking the time to envision the future of the business can lead to more informed financial decisions and strategies.
- Debt Awareness: Understanding the role of debt in business can help entrepreneurs make better financial choices.

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