No one knows your business better than you do. After all, you and Chief Executive Officer. You know what to do engineers. You know what to do production managers; no one understands the sales process better than you. You know that carries weight, and who is not. That is, unless we're talking about finance and accounting managers.
Most of the CEO, especially in small and medium-sized enterprises, come from operational backgrounds or sales. Often they have earned some of the financial and accounting knowledge through their professional lives, but only to the extent necessary. But as CEO, and we must make judgments about the performance and efficiency of operations as well as accountants and sales managers.
So, how diligent CEO evaluate the functions of finance and accounting in his company? Often, CEO assigns a value based on the quality of the message quantity. In other words, if the Controller delivers a positive financial report, optimistic, and Chief Executive Officer have positive feelings toward the Controller. If the controller delivers a bleak message, and CEO of the company has a negative reaction to the person. Unfortunately, "shoot the Apostle" is not at all uncommon.
dangers inherent in this approach should be obvious. Controller (or chief financial officer, accountant, whatever) has realized that in order to protect their careers, they need to make the numbers look better than they really are, or that they need to draw attention away from the negative things and focus on the positive things. This raises the possibility that important issues will not get the attention they deserve. It also raises the possibility that good people will be lost for the wrong reasons.
of large public companies and CEO of the company that has a great advantage when it comes to the performance of the Ministry of Finance evaluated. They have a committee of the Board of Directors audit, auditors, and the SEC, an analyst at Wall Street and public shareholders giving them the reactions. In smaller companies, however, CEO need to develop their tactics and special operations to assess the performance of financial managers.
Here are some suggestions to the chief executive for small business:
financial reports in a timely and accurate time
Chances are that at some point in your career stage, I had advised that it must insist on financial reporting "timely and accurate" accounting group. Unfortunately, you're probably pretty good judge of what is the right time, but it may not be nearly as good a judge of what is accurate. Sure, you do not have time to test the recording of transactions and verify the accuracy of the reports, but there are some things that you can and should be done.
- insist that include financial reports, comparisons over a number of periods. This will allow you to judge the consistency of recording of transactions and reporting.
- make sure that explain all the anomalies.
- recurring expenses such as rent and utilities must be reported in the appropriate period. Explain it - "There are two types of rents in April because we paid in early May" - is unacceptable. And it should be reported as an expense of the lease May May.
- sometimes, and ask to be reminded the company's policies for revenue recording, and the cost benefit, etc.
beyond the monthly financial reports
you should expect to receive information from accounting and finance your own group on a daily basis, not just when it's monthly financial reports. Some good examples are:
- daily cash balance reports.
- updates the collection of accounts receivable.
- cash flow forecasts (cash requirements)
- significant or unusual transactions.
ongoing work habits
have all the people you know who took it easy for several weeks, then pulled an all-nighter to meet the deadline. This action is consistent habits are strong indications that the individual does not pay attention to operations. It also strongly raises the possibility of errors in the last minute hectic activities.
readiness controversial
as CEO, you need to make it very clear financial managers / Accounting you expect frank and honest information, and they will not be victims of "shoot the Prophet" thinking. Once you are given this assurance, should your financial managers be an integral part of the company's management team. It should not be reluctant to express their opinions and concerns to you or other leaders of the ministry.
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