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Financial ManagementFINANCIAL MANAGEMENT
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Schwerzler has been studying and advising family business entrepreneurs for more than 40 years and he is the founder of the Family Business Institute. Financial management is the job of the Chief Financial Officer (CFO) of the business. Wikipedia defines CFO: The chief financial officer (CFO) is a corporate officer primarily responsible for managing the financial risks of the corporation. This officer is also responsible for financial planning and record-keeping, as well as financial reporting to higher management. In some sectors the CFO is also responsible for analysis of data. The title is equivalent to finance director, a common title in the United Kingdom. The CFO typically reports to the chief executive officer and to the board of directors, and may additionally sit on the board.
For those family businesses who can not afford to have a CFO, we offer some tricks and tips from our financial management experts: Financial management - for the family business owner who doesn't have a CFO and all the trappings of big companies! Let's face it - big companies need and can afford to have a whole arsenal of specialists and professionals to help them. They already know the tips and tricks. But, many of our smaller (and some that are not so small!) family business clients don't have professional financial managers. But you still need to run a a tight ship financially. So, this section is for you.
Bank Reconciliations Bank reconciliations - no fun, but family business staff and owners need to understand the procedure. Here's a good refresher. Bank Sweep Accounts Bank sweep accounts are a great tool for centralizing cash management amongst several accounts. But there are pitfalls - learn what to record and what not to record. 401 (k) Plan Management Retirement plan management is a complex and time consuming business process that many family business owners prefer to delegate to others. But is that always a good idea? Journal Entries - Very Revealing! Journal entries in accounting are somewhat analogous to the initial readings and observation that is made every time you visit your doctor. They are very revealing! Credit card balance transfers - they're not as cheap as you think! Credit card balance transfers are increasing. Watch out for the service fee you'll be charged to access this low interest rate. Construction Draws Construction draws have become an area for sharp-operating General contractors to earn extra profit - at the expense of their Subcontractors. Mortgage Escrow Mortgage escrow is a viable concept that has been abused by lender's greed. Service Charges Service charges are often a drop in the bucket to the payer, but make big bucks for the merchant. Learn how one made $18 million a year - in a scam.
Accounting Information System
"WITHOUT A GOOD QUESTION A GOOD ANSWER HAS NO PLACE TO GO..."
Family Business Experts Understands
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"Financial management, for many family businesses, is more of a accounting or bookkeeping function than a management function," according to top family business expert
