Unlock Your Business’s Financial Potential with the New Economy Financial Health Checkup

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Financial stability is crucial for business growth.

However, gauging your financial health and making informed decisions can be a challenge. 

That’s why we’re here. 

We help entrepreneurs gain control of their finances to make smart decisions. 

And one of the ways we do that is with our new Financial Health Checkup. 

If you’re a business owner looking to scale, optimize cash flow, and ensure long-term sustainability, it’s the perfect tool for you.

This easy-to-use quiz was designed specifically for entrepreneurs to evaluate their business’s financial standing and gain actionable insights to drive success. 

Let’s explore what the quiz is, who can benefit from it, and how it can transform your business.

What is the New Economy Financial Health Checkup?

The New Economy Financial Health Checkup is a strategic quiz designed to evaluate key financial areas needed for business success. This includes: 

It provides a clear picture of your business’s financial well-being and highlights areas for improvement.

At the end of the quiz, you receive a personalized financial health score with recommendations to strengthen your business’s financial foundation.

Who Needs This Quiz?

This quiz is specifically designed for entrepreneurs and business owners who are committed to growth and financial stability. 

Here’s who will benefit the most:

1. Startup Founders and Small Business Owners

If you’re in the early stages of your business or looking to improve financial management, this quiz can help identify areas that need attention.

2. Entrepreneurs Seeking to Scale

Growth requires strong financial planning. 

This quiz provides insights into whether your business is financially prepared to expand.

3. Business Owners Managing Cash Flow Challenges

Struggling with irregular cash flow? 

This quiz helps pinpoint potential inefficiencies and suggests ways to improve financial stability.

4. Owners Preparing for Investments or Funding

Understanding your financial health is crucial if you’re considering:

  • Applying for a business loan
  • Bringing on investors
  • Expanding operations

5. Leaders Focused on Long-Term Success

Sustainable growth depends on smart financial strategies. 

This quiz offers insights to help you plan for longevity and profitability.

How Can the Quiz Help Your Business?

Taking the New Economy Financial Health Quiz is a roadmap to business growth. 

Here’s how it can make a difference:

1. Clarity on Your Business’s Financial Health

Many business owners lack a clear understanding of their financial position. 

This quiz provides a detailed assessment to help you make better financial decisions.

2. Personalized Recommendations for Growth

Based on your results, you’ll receive tailored insights and actionable steps to strengthen your business’s finances and enhance profitability.

3. Smarter Financial Decision-Making

With a clearer picture of your financial standing, you can make informed decisions about investments, hiring, expansion, and operational improvements.

4. Motivation to Optimize Finances

Seeing an objective evaluation of your business’s financial health can be the motivation you need to:

  • Improve budgeting
  • Reduce debt
  • Enhance revenue streams

5. A Starting Point for Professional Financial Guidance

If the quiz reveals challenges, it may be time to seek expert advice. 

New Economy provides professional financial support to help entrepreneurs create effective strategies for long-term success.

Take the First Step Toward Financial Growth

Understanding your business’s financial health is the key to sustainable success. 

The New Economy Financial Health Checkup is a simple yet powerful tool that provides the insights and recommendations you need to help you scale and thrive.

Ready to gain financial clarity? 

Take the quiz today and start focusing your efforts for long-term success.

In Case You Missed It: Leading with Purpose & Staying Ahead in 2025

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January flew by, and as we stepped into a new year, one theme kept surfacing: the power of intentional leadership. 

Whether it’s embracing industry trends, navigating financial challenges, or inspiring a team, the best leaders don’t just react—they lead with purpose.

At New Economy, we believe that success starts with a clear vision and strong financial foundations. 

This past month, we explored the key trends shaping 2025 and what it truly means to lead like you care.

Here’s what stood out to us and how these insights can help you build momentum for the months ahead.

Key Trends for Small Businesses in 2025

The business landscape is constantly evolving, and staying ahead means being adaptable. 

In Newsletter #36 (sent on Jan 20), we highlighted an Entrepreneur article that outlined five major trends small business owners should watch. 

Here are the most critical takeaways:

  • AI Integration: Leveraging artificial intelligence to streamline operations and enhance customer experiences.
  • Financial Resilience: Strengthening cash flow through smart financial strategies, including multi-currency accounts for international transactions.
  • Gen Z Influence: Aligning marketing strategies to meet the demand for authenticity, sustainability, and short-form content.
  • Sustainability as a Standard: Consumers increasingly expect eco-friendly practices, making sustainability a competitive advantage.
  • Adaptability in Uncertain Markets:  Business owners who remain flexible will be best positioned to seize new opportunities.

For a deeper dive into these trends—especially financial resilience—check out the full Entrepreneur article here.

Leadership That Drives Real Impact

Trends and strategies mean little without the right leadership in place. Great leaders understand that their role goes beyond decision-making; it’s about creating a culture where people feel heard, valued, and empowered.

At the heart of strong leadership is one fundamental trait: care.

Caring leaders build trust, and trust leads to creativity, innovation, and long-term commitment. When leaders prioritize integrity, generosity, and a shared vision, they inspire loyalty—not just compliance.

True leadership isn’t about power or control; it’s about giving more than you take. When you invest in your team, you cultivate an environment where people thrive, push their limits, and contribute to something bigger than themselves.

If you’re looking for ways to refine your leadership approach, here are four great resources:

Your Financial Health Matters More Than Ever

Great leadership and business trends won’t translate into success without financial clarity. Many businesses unknowingly operate with financial blind spots that can hinder growth.

That’s why we created a Financial Health Checkup. 

This quick quiz helps you identify potential gaps in your financial strategy so you can make informed decisions and scale with confidence.

👉 Take the Financial Health Quiz Here 👈

What’s Happening at New Economy?

Our team is always working to provide valuable resources for business owners. Here are a couple of things to keep on your radar:

1. Referral Program: Help Others & Get Rewarded

We’re always looking to connect with ambitious entrepreneurs. If you refer someone to New Economy and they become a client, you’ll unlock exclusive benefits.

Learn more about our Referral Program ➡️ https://bit.ly/479NkO0

Want to schedule time with Jeff to chat or make an introduction? Book a meeting here ➡️ https://bit.ly/3NlDXm8

2. Stay Connected

We’re focused on keeping you informed with the latest business insights. You can find valuable content in three main places:

If you have any questions about our referral program or how to get connected with New Economy, feel free to reach out!

Key Takeaways As We Dive Deeper Into February

As we build momentum into the next month, here’s what we’re carrying forward:

  • Leadership is Rooted in Care: The best leaders foster trust, loyalty, and innovation.
  • Adaptability is Key: Understanding and embracing small business trends will set you up for success in 2025.
  • Financial Health Drives Growth: Identifying and addressing financial blind spots is crucial for long-term success.

There you have it 🙂

At New Economy, our passion is helping entrepreneurs gain control of their finances so they can make smart decisions and scale with confidence. Whether you’re leaning into new trends or shifting your leadership approach, we’ll be here every step of the way. 

Ready to take the next step? Schedule a time to meet with Jeff.

 

In Case You Missed It: Annual Reflections, Leadership, and Of Course…Data!

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Ever blink and realize the entire month just vanished? 

Maybe even a full year?

We’re recapping some of our highlights from the past month.

From loving your people and leading with vision, to end-of-year financial planning and harnessing the power of data. 

In case you missed it, here’s a roundup of the key insights we shared—and how they can help you step into the new year with clarity and momentum.

Reflecting on 2024 and Looking Ahead to 2025

We kicked off December 2024 focusing on strategic reflection and goal-setting with our two-day offsite. Evaluating what worked, what didn’t, and how to move forward stronger. 

Many of us took the time to do this with our personal lives, too. We did not set arbitrary resolutions, but we more holistically reflected on family, relationships, personal finances, fitness and nutrition, fun and recreation, and what we want professionally. 

The key takeaway was to invest in yourself and your future by carving out the time to intentionally set goals. 

Most of your life’s big achievements don’t happen by accident.

How about you?

What are you reflecting on and planning your goals for the new year? 

Is it business growth?

Is it checking off a bucket list item like that trip you have been dreaming about overseas? 

Is it stepping into your true self and becoming a better version of yourself? 

When a leader gets better, everybody wins.

Leadership Means…Love Your People

Jeff shared one of his core beliefs about leadership…

You can’t lead if you don’t love people.

Whether you fully agree, disagree, or land somewhere in the middle…

It’s one of the things that makes our team at New Economy so unique.

There are many other things that make us special, which Jeff shares in this video:

What Makes Us Unique?

But because we’re not the type to just share some thoughts without helpful tips, Jeff ended the year by sharing ten ways he actively supports our team: 

1) Spend quality time with people getting to know them

2) Understand how they think, communicate, and feel

3) Learn about what is important to them

4) Help them get what they want

5) Be a contributor in their life making it better

6) Set up a care team fund to support their needs

7) Support their mental, physical, and spiritual health

8) Give them your trust first

9) Encourage and cheer them on

10) Hold them accountable to getting better

(By the way, Jeff wasn’t always like this! For the first 10 years of his career, it was all about PRODUCTION, not people…production is fine, but not production at all costs!)

Data. Always, always Data!

And no month could go by without us sharing all the ways data works for you!

In addition to 5 ways to use your data to uncover business issues, we spoke about…

Real-Time KPI Dashboards

Quarterly or monthly reports might not cut it in today’s fast-paced environment. Timely, up-to-the-minute insights help you adapt on the fly.

Real-time financial dashboards that give you instant access to key performance indicators (KPIs) are the ticket for most businesses. 

This information lets you quickly identify issues as they arise and take corrective action before they become major problems.

Learn more about our love for KPI dashboards. 

EOS & Outsourced Support

Ever felt frustrated about not being able to get your hands on data to build and grow your business?

An outsourced controller or finance partner can free you up to concentrate on your core vision—especially if you’re running on EOS.

Jeff shares how EOS can help you make key decisions to build and grow your business.

Budgeting

When year-end rolls around, it’s important to consider:

Is your budget still working for your growing business?

Dare we go a step further and say this should be considered throughout the year?

Oh, we absolutely do!

In this throwback blog, we explain how to evaluate and refine your financial plan to align with your company’s evolving needs.

You’ll find practical tips to close out the year strong and set yourself up for success in the year ahead.

New Economy Blog – Evaluating Your Growing Company’s Budget as Year-End Approaches

3 Takeaways 

Here’s what we’re taking away into the new year:

  • Love Your People to Lead Them: Production matters, but genuine care for your team is the secret sauce to long-term success.
  • Plan Intentionally: Whether it’s personal goal-setting or nailing your 1-year plan, clarity only comes from setting aside time to think, strategize, and commit to a path.
  • Leverage Your Data: Data can work for you if you set yourself up for success with dashboards, KPIs, and internal or external team members to make sure everything is ready at your fingertips. 

There you have it 🙂

New Economy Helps You Stay On Track

At New Economy, our passion is helping entrepreneurs gain control of their finances so they can make smart decisions and scale with confidence. Whether you’re rethinking your budget, digging into data analysis, or running on EOS, we provide the insights and hands-on support you need. Year round. 

Ready to take the next step? Schedule a time to meet with Jeff and turn your year-end reflections into 2025 momentum.

 

How to Stay on Track with EOS Goals

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Ever feel like your business’s goals are slipping through your fingers, no matter how many lists, spreadsheets, or sticky notes you try? 

You know what you want to accomplish, but keeping everyone aligned and consistently moving forward can feel like herding cats—especially when you’re juggling a dozen other priorities.

If you’re running on the Entrepreneurial Operating System® (EOS), you’ve already got a framework for bringing focus, discipline, and accountability to your business. 

But if you’re not fully using the tools at your disposal, you’re not going to get all the benefits.

So how do we use EOS to ensure you stay on track once the excitement of setting those goals fades and the day-to-day grind takes over?

In this article, you will learn about:

  • How to keep your EOS vision and goals front and center
  • Using Rocks, Scorecards, and Issues Lists to maintain focus and accountability
  • Embracing adaptability and problem-solving to overcome obstacles
  • 3 key takeaways 

Let’s dive in. 

Good news: EOS isn’t just about crafting a beautiful vision or identifying your next big target. It includes tools to help you maintain momentum, ensure everyone knows their responsibilities, and keep your team laser-focused on the results that matter. Let’s break down a few key steps and tools so you can achieve the goals you’ve set and keep crushing it, quarter after quarter.

1. Revisit Your Vision and Core Focus Regularly

Remember that EOS is a people operating system – not just another acronym.

It works best when you start with a crystal-clear vision of where you want to go and why. If your team doesn’t know the “why,” it’s easy for them to lose interest or get sidetracked by shiny new ideas.

  • Keep the Vision Visible: Don’t tuck away your Vision/Traction Organizer™ (V/TO) in a dusty folder. Review it every quarter. Remind the team of your 10-year target, 3-year picture, and 1-year plan.
  • Link Goals to the Big Picture: When you’re discussing quarterly Rocks, tie them back to the larger vision. This helps your team understand how today’s work connects to tomorrow’s success, giving them a reason to stay engaged.

By consistently highlighting the vision, you reinforce the importance of staying on track. People thrive when they know why their efforts matter.

2. Set SMART Rocks and Revisit Them Weekly

EOS helps you break down that big annual plan into 90-day “Rocks.” These are your organization’s top priorities, giving you a manageable timeframe to make real progress. 

But just like your V/TO, setting the Rocks isn’t enough; you’ve got to keep them front and center.

  • Make Rocks SMART: We know you already know this, but you’d be surprised how often it’s missed. Your Rocks should be: Specific, Measurable, Attainable, Realistic, Time-bound. This transforms vague goals into actionable steps. It’s the difference between “improve sales until we’re swimming in money” and “close $500K in new monthly recurring revenue by March 31.”
  • Weekly Check-Ins: Use your Level 10 Meetings™ to review progress. Are you on track, off track, or done? No hiding, no guesswork—just a simple status update. This consistent rhythm keeps everyone accountable and provides early warning if something’s not working.

These short-term priorities create a sense of timeliness and clarity. Your team knows exactly what must happen this quarter, and the weekly review ensures no one drifts off course.

3. Use a Scorecard to Measure What Matters

Do not fear the numbers!

Numbers are your friends!

Without numbers, you’re left guessing if you’re actually moving forward. EOS encourages the use of a weekly Scorecard to measure key metrics that predict future outcomes.

  • Pick the Right KPIs: Choose metrics that truly influence your long-term goals. Think leads generated, customer retention rate, or gross margin—whatever signals health and growth in your business.
  • Track Trends, Not Just Results: If a number is off track for a few weeks in a row, it’s a red flag. Bring that issue to your Level 10 Meeting’s Issues List and solve it before it snowballs. By spotting trends early, you stay proactive instead of reactive.
  • Ownership of Metrics: Assign each metric to a single owner. If conversion rate drops, we know who’s responsible for investigating why and proposing a fix. Accountability can’t exist without clear owners.

A well-designed Scorecard gives your team real-time feedback. Instead of waiting until the end of the quarter to discover problems, you can reduce your pain and course-correct any time. 

4. Embrace the Issues List: Solve Problems Permanently

Staying on track doesn’t mean you won’t hit bumps along the road. That’s what the Issues List is for: a place to identify what’s standing between you and your goals.

  • Root Cause Analysis: Don’t just slap a Band-Aid on a surface-level problem. Dig deeper, find the real cause, and fix it once and for all. This continuous improvement mindset keeps your team from making the same mistakes twice.
  • Prioritize and IDS (Identify, Discuss, Solve): In your Level 10 Meetings, pick the most pressing issues and solve them systematically. By regularly clearing hurdles, you maintain the momentum needed to stay on track.

Many people worry that solving issues is a distraction, taking away from the core work they want to push forward. Remind your team that solving issues isn’t a distraction—it’s part of the process. Every time you remove an obstacle, you’re making it easier for everyone to move forward.

5. Keep Communication Flowing

EOS offers structure, but people still crave human connection. Staying on track with EOS goals needs to go beyond metrics and include continuous communication.

  • Regular Updates: Beyond the Level 10s, consider quick Slack updates or monthly emails to the team highlighting progress, celebrating wins, and acknowledging challenges.
  • Celebrate the Small Victories: Hitting a milestone? Completing a Rock early? Recognize it. Every celebration reinforces the idea that progress is possible—and worth pursuing. It doesn’t need to be a pizza party – creative fun ways that resonate with your team can be a joy and powerful motivator for everyone involved. 

Communicate regularly and clearly – but don’t over communicate either! Most of us have had the experience of rolling their eyes when another lengthy transmission from a leadership team comes out one too many times. 

6. Adjust, Don’t Abandon

As you track progress, you may discover that some goals need to be adjusted. Maybe market conditions shifted, or maybe a strategy isn’t panning out. Adjusting doesn’t mean failing—it means you’re smart enough to adapt.

  • Stay Flexible: If a certain initiative isn’t delivering the results you expected, don’t cling to it out of pride. Pivot where needed, reset expectations, and apply what you’ve learned.
  • Review Annually and Quarterly: Your annual and quarterly planning sessions are chances to realign. Refine your vision, swap out goals, and keep pushing toward a more focused and realistic future.

The point of EOS isn’t to stick rigidly to a plan that no longer makes sense. EOS exists to give you the structure to recognize when change is needed, and the framework to execute that change effectively.

3 Key Takeaways

Alright, it’s time for our takeaways. Let’s review: 

  1. Keep Goals Visible and Linked to Your Vision: Regularly remind your team why these goals matter. Connecting today’s tasks to tomorrow’s vision keeps everyone inspired and aligned.
  2. Measure, Check In, and Solve Issues Fast: Use Rocks, Scorecards, and Issues Lists to maintain accountability, spot problems early, and fix them before they derail progress.
  3. Embrace Adaptability: Staying on track doesn’t mean never changing course. It means knowing when to pivot and having the discipline to do it wisely.

There you have it 🙂 

New Economy Helps You Stay On Track

Our team of experts at New Economy helps entrepreneurs leverage their data, align their priorities, and integrate financial best practices with the EOS framework. 

If you’re ready to stay on track towards your biggest goals, schedule a time to meet with our Founder, Jeff, today. 

Let’s stay on track with your EOS goals and make them happen this year! 

How KPIs Lead to Accountability in Your Business

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Ever tried baking without a recipe? 

You grab some flour, sugar, maybe a bit of butter, throw it all together, and cross your fingers. Will it be fluffy and delicious—or come out of the oven as a dense, lumpy brick? Without clear instructions, you’re left guessing and hoping for the best.

Running a business without Key Performance Indicators (KPIs) works the same way. You might have all the right ingredients—talented people, great products, solid marketing—but if no one knows the exact measures of success or who’s responsible for what, the result can be…less than appetizing. 

Without a clear “recipe,” it’s hard to hold anyone accountable when something doesn’t rise as expected.

KPIs act like the recipe for your business, spelling out the key measurements and steps that lead to your desired outcomes.

Ready to toss the guesswork aside and bring accountability in your business with a solid recipe? 

Let’s roll up our sleeves and start kneading some KPI concepts into shape! 

What Are KPIs (And Why Do They Matter)?

KPIs are measurements used to determine if your company is on track with its goals. 

They’re the specific, quantifiable indicators that tell you if you’re on track. 

Without KPIs, you might know something is “off,” but you won’t know what or why. 

Just like guessing how much flour to use can lead to some wonky baked goods, guessing at your business’s direction leads to confusion. KPIs give you exact targets to aim for—like revenue goals, lead conversions, or customer satisfaction scores. 

With these metrics in hand, everyone understands what success looks like, and that clarity makes a world of difference.

Why Accountability is the Secret Ingredient

Accountability in business is like following the recipe’s exact steps. When each member of your team knows who’s responsible for measuring the flour, who’s cracking the eggs, and who’s setting the timer, you avoid the classic “It’s not my fault!” scenario if the cake falls flat.

A culture of accountability means:

  • Consistency: With KPIs guiding you, everyone knows how much of each “ingredient” is needed to reach business goals.
  • Transparency: Just like a well-written recipe, KPIs are right there in black and white. No hidden steps, no secret directions.
  • Confidence: When everyone understands their role and measurements, your team trusts each other’s contributions, making for a smoother operation.

It also helps avoid “too many chefs in the kitchen” – when everyone knows their role, there’s less stepping on others’ toes. 

How KPIs Turn a Chaotic Kitchen into a Well-Oiled Baking Enterprise

Picture a bustling kitchen. Without assignments, three people might start measuring sugar while no one preheats the oven. 

Yes, many businesses deal with the classic “too many cooks in the kitchen” scenario. 

KPIs help you assign responsibilities—one person is in charge of the “sales conversions” metric, another tracks “inventory turnover,” and another measure “customer retention.”

When everyone owns a specific KPI, there’s less time wasted asking, “Who’s responsible for this?” 

If something in your business isn’t going as expected, you’ll know exactly which part of the recipe needs adjusting. No more finger-pointing or shrugging; the data shows where the shortfall is.

Picking the Right KPIs

Not every ingredient belongs in the bowl. Some recipes call for ten ingredients, others just five. The key is choosing the right elements that actually matter. The same goes for KPIs—less can be more.

Focus on the critical metrics tied to your core goals. If your top priority is to boost revenue, focus on sales leads, conversion rates, and customer retention (the baking powder, oven temperature, and timer of your business’s cake). 

Tracking every tiny detail can overwhelm you and your team. 

Make KPIs Easy to Understand with a Recipe Card for Your Business

Have you tried to bake from recipes that were written in messy handwriting on the back of an envelope or napkin?

While there is a certain charm to passing down recipes written like this, it’s no way to run a business. 

We can leave the charm to Sunday dinner at grandma’s, and college startups in their first couple of months. 

Your business needs a laminated recipe card – typed in a large font with clear directions.

That’s where a dashboard or scorecard for your business comes into play. Visualizing KPIs in a simple, accessible format allows everyone to quickly see if things are on track.

Set a schedule for regular check-ins—weekly, monthly, or quarterly. Just as you peek into the oven to make sure your cake is rising, regularly reviewing KPIs ensures you’re not waiting until the “cake” has burnt before making adjustments.

What If the Cake Doesn’t Rise? Handling Off-Track KPIs

Sometimes, despite following the recipe, the cake still doesn’t rise. 

Maybe the oven wasn’t hot enough, or there was a baking powder shortage. 

In business terms, maybe that sales KPI isn’t improving, or customer retention metrics took a dip. 

It’s tempting to blame someone else even if something went wrong with a KPI that fell under their responsibility, but accountability isn’t about finger-pointing. It’s about looking at the data, figuring out what went wrong, and adjusting the “recipe” together. 

KPI Questions You Can Ask To Figure Out What Happened 

While a recipe that worked in medieval Europe may hold up in some cases, usually you’ll want to update it for your current time and place. Your recipe may need to be updated for any number of reasons. 

If your KPIs aren’t on track, your team can ask best practice questions like:

  • What changed locally or globally? 
  • Did we misunderstand the process?
  • Did we use the right tools or software?
  • Should we adjust our strategy or training?

3 Key Takeaways

We love KPIs more than freshly baked goods, and hope that your team grows to love them too!

Here are 3 takeaways: 

  1. KPIs = Your Recipe: KPIs give you the exact measurements and instructions for success based on your current information, leaving less room for guessing and more room for growth.
  2. Accountability = Proper Baking Process: When everyone knows their role and the metrics they must hit, no one’s left wondering why the cake flopped.
  3. Adjust & Improve: If something’s off, KPIs help pinpoint the problem. Accountability includes helping one another out by improving together, not just finger pointing. 

There you have it 🙂

A KPI Scorecard Has Been Our Secret Recipe for Business Growth 

But don’t worry, we love to share! 

At New Economy, using a KPI scorecard increased our top line increase by 40%

Not everyone’s a master baker, and not every entrepreneur knows which KPIs to measure. That’s where we come in. New Economy can help you choose the right KPIs, set up the systems to track them, and interpret the data so you know exactly how to tweak the “recipe.”

We’d love to help see what KPI scorecards can do for you! 

We’ll show you how to transform random guesswork into a reliable method for success—no more burning cakes or bland outcomes. With our guidance, your business can run like a top-notch bakery, always prepared with the right measurements and perfect timing.

Stop throwing random ingredients into the bowl and hoping for the best. Embrace KPIs to bring structure, clarity, and accountability to your business.

Schedule a time to meet with our team, and let’s whip up a recipe for success that everyone in your team can follow.

5 Ways to Use Your Data to Uncover Business Issues

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In today’s data-driven business landscape, the ability to leverage your financial information effectively can be the difference between stagnation and growth. 

At New Economy, we believe in the power of data to uncover critical business issues and drive strategic decision-making. By combining our expertise in financial management with the principles of the Entrepreneurial Operating System (EOS), we help businesses transform raw data into actionable insights.

Let’s explore five ways you can use your data to identify and address business issues, ultimately propelling your organization toward success.

1. Implement a Robust Issues List System

The EOS framework emphasizes the importance of maintaining an Issues List to keep business challenges visible and organized. As outlined by EOS Worldwide, there are three types of issues lists every organization should maintain:

  • The VTO (Vision/Traction Organizer) Issues List
  • The Weekly Leadership Team Issues List
  • The Departmental Issues List

By categorizing your issues and regularly reviewing your financial data, you can identify trends and patterns that may be contributing to these challenges. For example, if your Weekly Leadership Team Issues List consistently includes concerns about cash flow, it’s time to dive deep into your financial data to uncover the root causes.

2. Leverage Real-Time Financial Dashboards

In our fast-paced business environment, waiting for monthly or quarterly reports is no longer sufficient. Implement real-time financial dashboards that give you instant access to key performance indicators (KPIs). These dashboards can help you:

  • Monitor cash flow in real-time
  • Track revenue against projections
  • Analyze expenses by category
  • Measure profitability by product or service

By having this information at your fingertips, you can quickly identify issues as they arise and take corrective action before they become major problems.

3. Conduct Regular Financial Health Check-ups

Just as you would visit a doctor for regular check-ups, your business finances need routine examinations. Set up a schedule for comprehensive financial reviews that go beyond surface-level metrics. During these check-ups:

  • Compare current performance to historical data
  • Analyze trends in revenue, expenses, and profitability
  • Review your balance sheet for potential red flags
  • Assess your debt-to-equity ratio and other key financial ratios

These in-depth analyses can reveal underlying issues that might not be immediately apparent in day-to-day operations.

4. Utilize Predictive Analytics

While historical data is crucial, forward-thinking businesses are increasingly turning to predictive analytics to anticipate future challenges. By applying statistical models and machine learning algorithms to your financial data, you can:

  • Forecast future revenue and expenses
  • Identify potential cash flow issues before they occur
  • Predict seasonal fluctuations in your business
  • Anticipate market trends that could impact your industry

This proactive approach allows you to address potential issues before they materialize, giving you a competitive edge in your market.

5. Integrate Financial Data with Operational Metrics

Financial data doesn’t exist in a vacuum. To truly uncover business issues, you need to integrate your financial information with operational metrics. This holistic approach can reveal connections between financial performance and other aspects of your business. For example:

  • Correlate customer satisfaction scores with revenue trends
  • Analyze the impact of employee turnover on productivity and profitability
  • Assess how inventory levels affect cash flow and storage costs
  • Evaluate the ROI of marketing campaigns by tracking associated revenue

By connecting these dots, you can identify issues that span multiple areas of your business and develop comprehensive solutions.

Putting It All Together: The New Economy Approach

At New Economy, we understand that data analysis can be overwhelming, especially for growing businesses. That’s why we’ve developed a unique approach that combines financial expertise with EOS principles to help our clients make sense of their data and drive growth.

Our team of financial experts work closely with you to implement these data-driven strategies, ensuring that you’re not just collecting data, but using it to make informed decisions. As highlighted in our recent video on thriving as an EOS Integrator, we believe in blending leadership and financial insight to create a powerful framework for success.

By leveraging tools like EOS One software and following the EOS Process, we help businesses create a culture of transparency and accountability. This approach ensures that financial data is not just the domain of the accounting department, but a valuable resource for the entire organization.

Remember, the goal is not just to identify issues, but to solve them systematically. As EOS Worldwide explains in their blog post on the power of the Issues List, the key is to discuss, debate, and resolve issues in a structured manner.

In conclusion, your financial data is a goldmine of insights waiting to be uncovered. By implementing these five strategies and partnering with experienced professionals like those at New Economy, you can transform your data into a powerful tool for identifying and addressing business issues. Don’t let valuable insights slip through the cracks – start leveraging your data today to drive your business forward.

For more information on how New Economy CPA can help you implement these strategies, get in touch with us here and we can discuss how to partner together to bring your EOS to life.

Best Financial Practices of Growth-Minded Companies

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Growth-minded companies understand that financial management is not just about keeping the books balanced—it’s about leveraging financial data to make smart decisions and fuel sustainable growth. 

At New Economy CPA, we’ve worked with numerous entrepreneurs and growing businesses over the past 20 years, and we’ve identified key financial practices that set successful, growth-oriented companies apart. Let’s dive into these best practices that can help you fall back in love with your business and achieve your growth goals.

1. Embrace Timely and Accurate Financial Data

Growth-minded companies recognize that timely and accurate financial data is the foundation of sound decision-making. They don’t rely on guesswork or outdated information. Instead, they ensure their financial records are consistently up-to-date and precise. This practice allows them to:

  • Respond quickly to market changes
  • Identify trends and opportunities
  • Make informed decisions about investments and resource allocation

By having a clear picture of their financial health at all times, these companies can confidently navigate challenges and capitalize on growth opportunities.

2. Implement a Robust Cash Flow Management System

Cash is the lifeblood of any business, and growth-minded companies pay close attention to their cash flow. They implement systems to:

  • Monitor cash inflows and outflows regularly
  • Create and maintain cash flow projections
  • Identify potential cash crunches in advance

With a solid cash flow management system in place, these companies can avoid the stress of unexpected financial shortfalls and ensure they have the resources needed to fuel their growth initiatives.

3. Implement Financial Modeling and Forecasting

Successful growth-oriented businesses don’t just focus on their current financial situation—they look to the future. They use financial modeling and forecasting to:

  • Project future revenue and expenses
  • Analyze different growth scenarios
  • Assess the potential impact of business decisions

This forward-looking approach allows them to make strategic decisions that align with their long-term growth objectives.

4. Develop and Use a Business Scorecard

Growth-minded companies understand the importance of measuring what matters. 

We recommend businesses implement EOS for accountability on goal-setting and a core aspect of EOS is the use of a scorecard.

Growth-minded businesses will create and regularly update a business scorecard that includes key performance indicators (KPIs) relevant to their industry and growth goals. This scorecard might include metrics such as:

  • Revenue growth rate
  • Customer acquisition cost
  • Customer lifetime value
  • Gross profit margin
  • Employee productivity

In a full EOS process, the scorecard will also include nonfinancial data from all segments of the business. 

By tracking these KPIs, they can quickly identify areas that need improvement and make data-driven decisions to optimize their operations.

5. Invest in Financial Expertise

Successful growth-oriented businesses recognize that they can’t do it all alone. They invest in financial expertise, whether by building an in-house finance team or partnering with external professionals like New Economy CPA. This expertise helps them:

  • Interpret complex financial data
  • Develop strategic financial plans
  • Navigate tax implications of growth
  • Identify opportunities for cost savings and increased profitability

By leveraging financial expertise, these companies can focus on their core competencies while ensuring their finances are managed professionally.

6. Maintain a Strategic Budget

Growth-minded companies don’t view budgeting as a restrictive exercise. Instead, they see it as a strategic tool to align their financial resources with their growth objectives. They create flexible budgets that:

  • Allocate resources to high-impact growth initiatives
  • Allow for adjustments based on changing market conditions
  • Provide a framework for evaluating new opportunities

This approach to budgeting ensures that every dollar spent is contributing to the company’s growth strategy.

7. Regularly Review and Adjust Financial Strategies

The business landscape is constantly evolving, and growth-minded companies know that their financial strategies need to evolve too. They make it a practice to regularly review their financial performance and strategies, adjusting as needed to stay on course for growth. This might involve:

  • Quarterly financial reviews
  • Annual strategic planning sessions
  • Periodic reassessment of financial goals and KPIs

By staying agile and responsive, these companies can capitalize on new opportunities and navigate challenges effectively.

8. Prioritize Financial Transparency

Growth-oriented businesses understand that financial transparency fosters trust and alignment throughout the organization. They make it a priority to:

  • Share relevant financial information with team members
  • Educate employees on how their roles impact the company’s financial performance
  • Celebrate financial wins and openly address challenges

This transparency creates a culture of financial responsibility and empowers employees to make decisions that support the company’s growth objectives.

Let us Help You Get Started

Implementing these financial best practices can transform your business from merely surviving to thriving. At New Economy CPA, we’ve seen firsthand how these practices have helped our clients achieve sustainable growth and gain peace of mind about their financial future.

Remember, you don’t have to navigate your financial journey alone. Whether you’re a small business owner or a startup founder, having the right financial partner can make all the difference. We’re here to help you implement these best practices, gain clarity on your finances, and make the smart decisions that will fuel your growth for years to come.

Ready to take your financial management to the next level and accelerate your company’s growth? Schedule an appointment with New Economy CPA today, and let’s work together to discover your business’s full potential. 

How to Thrive as an EOS Integrator: Blending Leadership and Financial Insight

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The role of an EOS Integrator is critical for driving organizational success. 

An Integrator acts as the glue that holds the company’s operational and strategic initiatives together, transforming the visionary’s ideas into concrete results. 

The challenge for the integrator is, by nature, that you’re required to pull many disciplines together while wearing multiple hats. 

How do you keep the company aligned on the vision?

How do you ensure accountability for sales goals?

Are meetings all happening on schedule?

In this post, we’ll explore some of the fundamentals of the role, and provide practice steps toward success.

The Role of an EOS Integrator

An Integrator must wear many hats: they are a fierce communicator, a unifier, and a problem-solver who ensures that the company’s vision is systematically executed. 

To faithfully execute the business plan, Integrators must understand every crevice of the company, hold teams accountable, foster company-wide transparency, and ensure all oars are moving in unison.

There are telltale signs when an organization could benefit from a stronger Integrator:

  • A palpable lack of accountability
  • Persisting issues that resist resolution
  • Sluggish decision-making

An effective Integrator attacks these symptoms by drilling to the root of challenges, demanding action and follow-through, and facilitating speedy yet thoughtful decisions.

Where Good Accounting Fits In

Good accounting practice is not merely a matter of keeping books in check. 

At New Economy CPA, we believe that it is foundational to the successful execution of EOS. A remote accountant in your accountability chart is essential. 

But why?

Financial Clarity Leads to Accountability

Sign one of the need for a stronger Integrator, a deficiency in accountability, can be magnified when financial insights are blurry. 

An Integrator armed with clear financial statements can:

  • Set realistic goals
  • Measure achievements accurately
  • Motivate teams with objective progress tracking

Remote accounting professionals provide real-time data and financial analysis that empower Integrators to hold every department accountable effectively. 

This ensures not just achieving but exceeding those all-important quarterly rocks and scorecard numbers.

Uncover Issues with Precise Data

The second sign, recurring issues, often finds its genesis in misaligned or misinterpreted data. 

When an Integrator collaborates with knowledgeable accountants, they gain access to meticulous financial reports that shed light on underlying problems. 

Identifying, discussing, and solving – the EOS IDS process – benefits immensely from the insights that comprehensive financial information provides. 

When financial trends and anomalies stand out, Integrators can guide their teams in resolving issues at their root, not just their symptoms.

Decision-Making Empowered by Real-Time Financial Insights

Slow decision-making, the third sign, could indicate a lack of immediate access to financial insights necessary for sound judgment calls. 

The integration of remote accounting ensures that accurate, up-to-date financial data is readily available for quick, informed decision-making. 

When an Integrator understands the fiscal implications of each choice, meetings transform from mundane to strategic, from a chore to a decisive action hub.

Thriving as an EOS Integrator with a Financial Perspective

To thrive as an EOS Integrator, it is imperative to foster the “Grow or Die” mindset with a robust grasp of organizational finance. 

Here’s how an Integrator can amplify their impact through good accounting:

  • Establish Financial Scorecards: Work with your remote accountant to develop financial scorecards that are as critical as operational scorecards in gauging company health.
  • Financially Focused IDS: Engage in IDS sessions where financial insights drive the discussion, ensuring the company’s financial health is front and center.
  • Budget Adherence: Reinforce budget discipline across departments, showing the direct impact on company goals.
  • Drive Financial Growth: Set concrete financial targets and pair them with operational goals to synergize the teams’ efforts.

Learn more about partnering with an EOS-specific accounting firm in this video: How to Go Deeper with the EOS Data Component of Your Business 

The best Integrators understand that accountability, decisiveness, and command over detail — including the financial details — are crucial to thriving within an organization. 

With New Economy CPA’s remote accounting services as part of your EOS model, you have a partner that provides the financial clarity and support needed to not only meet your company’s growth objectives but exceed them.

As spelled out in “Rocket Fuel: The One Essential Combination,” crucial resources assisting an EOS Integrator in developing their capabilities are within reach. 

At New Economy CPA, we believe that Integrators, equipped with accessible, actionable, and accurate financial data and insights, can reach unprecedented levels of success. 

Integrators are invited to embrace the robust, strategic partnerships that remote accounting services can offer, bolstering their ability to lead with vision and precision.

To gain more insights like this, and gain the accountability to accompany your team’s vision, subscribe to our newsletter here!

Unlock the Secrets of Effective Leadership with EOS Data

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EOS Data can be a tool that unlocks profitability in your business, and aligns your entire team around a shared vision.

Data is the foundation from which all business planning, growth and decision-making is built upon. Without a good foundation, a business will lack accountability, striving for answers in a sea of unknowns. 

Check out this recent video from our founder Jeff Allain, and discover how EOS data can transform your business.

 

 

In a world where entrepreneurs and business leaders constantly strive for efficiency and growth, EOS data is where continuity is found. 

If you’re not familiar with EOS, here is a quick background. 

EOS is the Entrepreneurs’ Operating System, designed to provide an encompassing framework to align an entire business. It consists of the following components:

  • Vision
  • People
  • Data
  • Issues
  • Process
  • Traction

Today, we’re focusing on data, because it’s the mechanism used for accountability and making adjustments when something is off track. Without data, there is no way to examine whether the organization is following its vision or goals.

Understanding EOS and Its Importance

EOS is all about moving goals from just an idea into something practical and tangible in the real world.

This pragmatism fosters a culture of accountability and transparency, which is essential for any organization aiming to scale. 

The EOS framework encourages businesses to establish a scorecard that tracks key performance indicators (KPIs). 

This scorecard serves as a vital tool for measuring progress and identifying areas for improvement. 

By having a clear visual representation of their metrics, companies can make informed decisions rather than relying on gut feelings or anecdotal evidence. 

The Role of Data in Business Decision-Making

Data is the lifeblood of any successful business. This means access to accurate and timely financial statements, which provide insights into a company’s performance. 

These statements should not only reflect past performance but also serve as a predictive tool for future growth. Without this data, entrepreneurs may find themselves making decisions based on incomplete or outdated information, leading to potential pitfalls.

A critical tool to ensure success is cash flow forecasting, particularly the 13-week rolling forecast. 

This tool allows businesses to anticipate cash flow needs and make proactive adjustments to their financial strategies. 

By forecasting cash flow, companies can avoid unexpected shortfalls and ensure they have the necessary resources to seize growth opportunities. 

The integration of these data components into the EOS framework will bring the entrepreneurs’ vision to life.

Implementing the EOS Data

Many companies struggle with the financial side of their operations, often lacking the necessary tools and processes to manage their data effectively. Every business has goals of some kind, even if they’re not explicitly stated. 

What’s lacking is a framework for systematically achieving those goals. 

In order to do that, the goal must be tied to a number. 

Then, you track progress toward that number (in a scorecard) and stay vigilant about tracking progress. If things are off track, you’ll see it, and be able to adjust. 

This is the power of data. 

You are now able to build a data-driven vision, then work backward from that goal and take consistent action toward your vision.

Your financial models serve as a roadmap, allowing them to set realistic goals and measure progress towards achieving them. 

Additionally, having a dedicated implementer who understands the nuances of EOS can significantly enhance a company’s ability to leverage data for strategic decision-making. 

The Impact of Data-Driven Decision-Making on Growth

Do you want your business to grow? Do you have a plan for this growth? Unfortunately, growth doesn’t happen by accident. With data-driven decision-making and planning, you can start to take control of your growth.

This proactive approach not only enhances operational efficiency but also fosters a culture of innovation and continuous improvement.

What would that do for your business? 

For many, the impact of setting clear goals, then building a data-driven roadmap for achieving them can truly be life-changing. 

If you want that roadmap, it starts here. And it starts with data.

For more insights and to watch the full video, check out New Economy CPA: EOS Companies: Get the data you need to make smart decisions!

If you enjoy this content, consider subscribing to New Economy CPA’s YouTube channel!

Key Takeaways

  • EOS provides a structured framework for businesses to align their goals and operations.
  • Accurate financial data, including scorecards and forecasts, is crucial for informed decision-making.
  • New Economy CPA specializes in sitting in the Finance Seat to help run the data component of EOS.
  • The integration of data management can lead to greater control and growth for entrepreneurs.

Let’s Grow Together

The journey to becoming a data-savvy organization may seem daunting, but with the right guidance and tools, entrepreneurs can unlock new levels of success. 

That’s what New Economy CPA is here to do – equip entrepreneurs with the tools and guidance they need to walk this journey. We’re walking it ourselves, and are here to help others do the same!

To gain more insights like this, and gain the accountability to accompany your team’s vision, subscribe to our newsletter here!

accrual accounting

What the Heck is Accrual Accounting and Why Does it Matter?

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Accrual…what? 

If you didn’t have the pleasure of attending business or accounting school, it’s understandable that some of the accounting jargon can leave you feeling confused. 

But accrual accounting isn’t a small definition at the back of an accounting textbook. Choosing accrual accounting can be the foundation for how you set up your entire bookkeeping and accounting systems, positioning you for success. 

Shall we get into it? 

accrual accounting

So, What the Heck is Accrual Accounting?

In plain English, accrual accounting is all about timing. 

It’s a method where you record income and expenses when they’re earned or incurred, not necessarily when the cash changes hands.

  • Income is recorded when you earn it, like when you send out an invoice, even if your customer hasn’t paid yet.
  • Expenses are recorded when you owe them, such as when you receive a bill, not just when you actually pay it.

Accrual accounting gives you credit for being productive, not just for having money in the bank. It’s like recognizing that you’ve run a marathon, even if you haven’t collected all your medals yet!

Who the Heck Cares About Accrual Accounting? 

Glad you asked! 

Accrual accounting gives you a more accurate and realistic picture of your business’s financial health. 

Most businesses opt for accrual accounting, and most accounting and finance professionals recommend considering this method.

Here’s why:

  • Big Picture View: It shows you the true financial performance of your business over a period of time. You’re matching revenues to the expenses incurred to generate them, which makes your financial statements more meaningful.
  • Plan Ahead: By recognizing income and expenses when they happen, you can better predict future cash flows, helping you plan for upcoming expenses or investments.
  • Trustworthy Reports: Lenders, investors, and stakeholders prefer accrual accounting because it provides a clearer picture of your company’s financial position.

If you’re working on a big project that spans several months, accrual accounting helps you recognize portions of the revenue and expenses as you progress, giving you a real-time view of how profitable the project is at any given moment.

When The Heck Should a Business Use Accrual Accounting?

If you’re a small business just starting out, cash accounting might seem easier. In these cases, you simply record transactions whenever cash changes hands. 

But as your business grows, accrual accounting becomes more beneficial—and sometimes necessary. 

Consider using accrual accounting if:

    • You Deal with Large Projects or Contracts: If you provide services or products over time, accrual accounting helps you match income and expenses accurately.
    • You Offer Credit to Customers: Recording sales when you invoice (not just when you get paid) gives you a better handle on revenues and outstanding receivables.
    • You’re Seeking Funding or Investors: Accrual-based financial statements are generally required by banks and investors because they reflect your business’s true financial performance.
    • You Have Plans for Revenue Growth: If large income growth is on the horizon, accrual accounting is generally recommended.
    • The IRS Requires It: C corporations and those partnering with a C corporation partner are generally required to use accrual accounting. Also, most entities engaging in “the production, purchase, or sale of merchandise as an income-producing factor” should use accrual accounting for inventory transactions at least.

But Wait, What’s the Catch?

Like anything worthwhile, accrual accounting isn’t without its challenges.

  • Complexity: It’s more complicated than cash accounting. You’ll need to track receivables and payables diligently.
  • Cash Flow Confusion: You might show a profit on your income statement while your bank account is running on fumes. That’s because accrual accounting recognizes revenue you’ve earned but not yet received.
  • More Effort: It requires more accurate record-keeping and a solid accounting system to manage it effectively.

But don’t let that scare you off! The benefits often outweigh the extra effort, especially when you have the right support.

3 Key Takeaways

Accrual accounting is the recommended way to go for most up-and-coming businesses. Despite a bit of extra work, at New Economy we encourage our clients to use accrual accounting for their businesses to ensure they’re ready to crush their goals. 

Remember:

  1. Accrual = Accuracy: It provides a clearer, more accurate view of your business’s finances by matching income and expenses when they occur.
  2. Growth-Ready: If your business is scaling, accrual accounting helps you track financial performance more effectively, making it easier to plan and secure funding.
  3. Support is Key: The complexity of accrual accounting is manageable with the right help. Partnering with experts like New Economy ensures you get the benefits without the headaches.

There you have it 🙂

accrual accounting

How New Economy Can Help

Switching to accrual accounting might feel like you’re learning a new language, but our team is fluent in and can be your translator. 

At New Economy, we’re pros at helping businesses make the transition smoothly.

  • Expert Guidance: We’ll help set up your accounting system so that it’s tailored to your business needs.
  • Ongoing Support: Our team provides continuous assistance, ensuring your financial records are accurate and up-to-date.
  • Customized Reporting: We make sense of the numbers, providing reports that are easy to understand and actionable.

Schedule a time to meet with our Founder, Jeff, so we can take care of the accrual accounting stuff for you! 

Does My Business Need a Bookkeeper, Accountant, Controller, or CFO?

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There’s a lot riding on your financial team, but how do you know if you have the right roles in place to maximize your success? 

Are you asking your bookkeeper to drive your financial strategy?

Is your CFO wasting time on data entry? 

Can’t I just hire an accountant and be done with it? 

And what the heck is a controller? 

Depending on the size and stage of your business, you may need some or all of these roles. 

CFO

Making sure you have the right person for each job increases your efficiency and potential to knock your growth goals out of the ballpark. 

But you may not need multiple full-time hires. Outsourced and fractional roles exist to assist growing organizations. 

Before we get into that, let’s make sure we’re on the same page with every role and its functions. 

What Does Everyone Do?

Bookkeeper

Bookkeepers handle the daily ins and outs of your money matters, which require a keen eye for detail. The time and energy to manage this work may weigh heavily on employees who don’t specialize in this, so a bookkeeper is often your first financial hire. 

Key bookkeeper functions: 

  • Daily upkeep: Manages payroll, pays bills, and keeps your books in order.
  • Keeps your financial house clean: Ensures all transactions are accurately recorded.
  • First line of defense: Catches small issues before they become big problems.

Unlike accountants, who have the rigorous CPA designation to prove their expertise, bookkeepers do not have a standard designation. There are many bookkeeping certifications out there, and the quality varies, so it’s important to find someone trustworthy who has the correct training to do a good job for your business. 

Accountant

An accountant is a bridge between managing your day-to-day finances and providing strategic insights. They particularly shine when it comes to helping you understand your financial statements and what they are telling you about the business. This is an essential part of any business, and a headache if you don’t have the right team supporting you. 

Key accountant functions: 

  • Beyond bookkeeping: Prepares financial statements and ensures tax compliance.
  • Insight provider: Delivers more in-depth reports and financial analysis.
  • Tax pro: Helps you navigate the complex world of taxes, ensuring you pay what you owe and that you take advantage of the tax write-offs available.

Make sure you find an accountant with a current CPA designation if you’re going to be leaning on them in your business. 

Controller

Controllers oversee your accounting operations, ensuring everything runs smoothly and accurately. They are pros at letting you know what has happened in the business based on the historical financial statements.

Key controller functions: 

  • Financial fidelity: Manages policies and internal controls to safeguard your assets.
  • Team leader: Directs the accounting staff and integrates processes.
  • Audit liaison: Prepares your business for external audits, ensuring compliance.
  • Business Tools: Provide and support financial tools to run the business (i.e cash flow forecasting, budgeting).

While accountants and bookkeepers can also prepare for audits, controllers in particular excel in this area. They can help prevent audits by building strong controls, but when they are required, can ensure the process goes smoothly. 

Chief Financial Officer (CFO)

Finally, we arrive at the CFO. Your strategic financial partner who aligns financial management with business objectives, especially during periods of rapid growth. They are the right hand to the CEO providing forward looking insights.

Key CFO functions: 

  • Visionary: Manages big-picture financial strategy, from capital raising to budget management.
  • Growth navigator: Helps secure funding and manages investor relations.
  • Strategic leader: Ensures the financial team supports broader business goals, maintaining budget discipline and strategic alignment.

How They Work Together 

With so many moving parts, it may be hard to visualize how these roles work together in an accounting department. Let’s provide an example that is relevant for many medium-sized growing businesses. 

The bookkeeper records daily transactions, ensuring that all financial data is up-to-date and accurately entered. This foundational work is crucial for accountants, who rely on these records to prepare detailed financial statements and conduct thorough tax planning. Some organizations may have several bookkeepers and accountants. 

At the next level, the controller uses the reports prepared by the accountant to enforce and refine accounting policies and internal controls, ensuring that the financial operations run smoothly and comply with legal standards. This oversight helps to safeguard the company’s assets and improves overall efficiency, which is critical for the strategic work of the CFO. 

With a well-managed financial framework in place, the CFO can focus on higher-level strategic planning and capital management. They can leverage the accurate and timely information provided by the controller to make informed decisions about investments, funding, and growth opportunities. 

This strategic guidance, in turn, feeds back into the operational level, where improved processes and financial strategies help streamline everyday accounting tasks, creating a cohesive, supportive financial environment.

What Your Business Needs

While there’s never a one-size-fits-all solution, here are some general guidelines for when different roles make sense in an organization. 

Small, Relatively Stable Businesses

If your business isn’t too big, and you’re not planning any major growth or changes, you’re probably fine with a bookkeeper and/or accountant. They’ll make sure your books are in order and compliant, and help prepare you for tax time. They can prepare financial reports to give you a sense of your business. 

While your business may be small, it could make financial sense to have a bookkeeper and an accountant, even if they are part-time. Bookkeepers typically charge less, and you don’t need someone with a CPA doing extensive data entry. However, this approach only makes sense if there is good communication between all parties to avoid headaches. 

Medium Businesses

If your business is medium-sized, a bit more complex but relatively stable, and you have many employees and streams of income… you might be at the stage where accountants aren’t quite enough. 

In this case, you’ll want to consider adding a controller (even if only part-time) to your team. You wouldn’t want to risk the headaches and potential legal pitfalls of not having someone keeping a very close eye on everything going on in your business. 

Startups, Rapidly Growing Businesses, and Large Enterprises

You may be ready for a CFO if your business is:

Managing finances with an eye for strategy needs sophisticated financial oversight. A CFO becomes essential to navigate capital increases, detailed budgeting, and complex financial forecasting when funding sources and growth are rapidly changing.

Fractional Roles

For many businesses, some or all of these roles can be part-time or fractional hires. This can allow a business to reap the benefits of the expertise of financial professionals, without the longer-term commitment and full-time paychecks. 

For example, a full-time CFO can cost anywhere from $100-400K per year at an SME, if you’re including salary and benefits. However, an outsourced CFO could cost only $6-12K per month, depending on the services provided.

3 Key Takeaways

If you’re not sure how to build out your financial team based on your business size and stage, talk to our team at New Economy. We’re always happy to help! 

Remember:

  1. Right Expertise, Right Time: Ensure you have the appropriate financial expertise at each stage of your business growth.
  2. Stay Proactive: Don’t wait for financial challenges to find you; have the right team in place and be ready for the future. 
  3. Strategic Growth: Leverage the expertise of part-time and fractional financial team members who help rather than hinder your business success.

There you have it 🙂

CFO

New Economy Helps You Put Together Your Team 

At New Economy, we understand that one size does not fit all when it comes to your financial needs. We’re able to help find part-time and fractional virtual support. 

Whether you need a bookkeeper, accountant, controller, or CFO…we have the people who can help your finances thrive. We can save you time by ensuring you have vetted, professional finance experts to help with your business. 

Schedule a time to meet with our Founder, Jeff, and discuss how our team can help your team thrive! 

Reasons Your Current Accounting Team Sucks

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Do you ever dread talking with your accounting team?

Do you finish conversations with your accountant feeling more confused than confident?

Do your finances feel more like a mystery than a roadmap? 

I hate to break it to you…but your accounting team might suck. 

We get it—“sucks” might sound harsh. 

We’re accountants too, and we’ve met some amazing accountants along the way (many who we hired for our team!) 

But too often we’ve found many CPAs who are doing a massive disservice to businesses, and it doesn’t have to be that way. 

Sometimes it’s a lack of training, communication skills, or resources. But whatever the reason for this predicament, it’s better to figure it out sooner rather than later. 

accounting team

Let’s break down the top reasons why your current accounting team might not be cutting it—and, more importantly, what you can do about it.

1. They’re Stuck in the Stone Age

Still Using Spreadsheets for Everything?

If your accounting team is still relying on endless spreadsheets, manual entries, and outdated software, you’re dealing with a serious case of inefficiency. 

Spreadsheets have their place, but they’re not meant to be the backbone of your financial operations. Outdated tools mean higher chances of errors, slower processes, and more time spent on tasks that could be automated.

The Math on Why it Sucks:

  • Manual data entry = more errors
  • Outdated software = missed opportunities for efficiency
  • Time wasted on repetitive tasks = less time for strategy

What You Deserve: A modern accounting team should be using up-to-date software and automation tools to streamline processes, reduce errors, and save time.

2. Communication is Like Pulling Teeth

Does Your Team Only Speak Numbers?

Financial reports filled with jargon, explanations that leave you more confused, and updates that are as clear as mud—these are all signs of poor communication. 

If you can’t understand what your numbers are telling you, how are you supposed to make informed decisions?

The Math on Why it Sucks:

  • Miscommunication =  misunderstandings + mistakes
  • Fatigue from constantly asking baseline questions = less energy for more strategic conversations 
  • Lack of clarity = lack of confidence in your financials

What You Deserve: Your accounting team should be able to break down complex financial concepts into simple understandable language. You shouldn’t need a degree in finance to know where your money is going. Clear, jargon-free communication helps you stay informed and confident in your decisions.

3. They’re Reactive, Not Proactive

Always Playing Catch-Up?

Is your accounting team constantly putting out fires instead of preventing them? A reactive approach means they’re only dealing with problems as they arise—missing out on opportunities to optimize and plan for the future. 

It’s like driving while only looking in the rearview mirror. Sure, you’ll see what’s behind you, but you’re likely to miss what’s up ahead.

The Math on Why it Sucks:

  • Constantly scrambling to fix issues = Missed opportunities for growth + savings
  • No proactive planning = more stress for you, and everyone else on the team
  • An ounce of prevention > a pound of cure

What You Deserve: A proactive accounting team doesn’t wait for problems to arise—they anticipate them and take action to prevent them. Regular financial reviews, strategic planning, and forward-thinking advice keep your business ahead of the curve. Your team will ideally always be one step ahead, so you can focus on running and growing your business.

4. They Make You Second-Guess Everything

Confidence in the Red?

If your accounting team isn’t providing you with clear, accurate information, it’s easy to start second-guessing every decision you make. Maybe you’re not sure if your financials are accurate, or you’re uncertain about the reports you’re getting. 

When you don’t trust the numbers, it’s hard to move forward with confidence.

The Math on Why it Sucks:

  • Doubt in your financials = indecision
  • Second-guessing your strategy = missed opportunities
  • Constant worry about mistakes = more stress

What You Deserve: A solid accounting team provides you with clarity and assurance, turning uncertainty into confidence. With accurate reports and expert advice, you can make informed decisions without the constant fear of making a mistake. It’s about transforming your financials from a source of stress into a powerful tool for growth.

5. They’re Costing You Money 

Financial Errors and Missed Opportunities

Errors in accounting aren’t just annoying—they can be downright expensive. Whether it’s overpaying on taxes, missing out on deductions, or dealing with mistakes that lead to penalties, a subpar accounting team can take a serious toll on your bottom line.

The Math on Why it Sucks:

  • Overpaid taxes = money out the window
  • Missed deductions and credits = lost opportunities
  • Penalties and fees due to errors = unnecessary costs

What You Deserve: An accounting team that’s meticulous and knowledgeable, ensuring that your finances are optimized. They should be spotting every deduction, maximizing your tax benefits, and catching errors before they become costly problems. 

You Deserve an Accounting and Finance Team that Rocks

The right accounting team doesn’t just help you avoid pain, they create a solid foundation for growth. They can turn your financial operations into a source of strength, not stress.

If your current team is stuck in the past, poor at communication, reactive instead of proactive, making you second-guess everything, and costing you money, it’s time to reconsider your options. 

So, take a step back, evaluate your current team, and don’t be afraid to make a change if it’s needed. Your business—and your peace of mind—are worth it.

3 Key Takeaways:

At New Economy, we take pride in helping our clients find accounting solutions that don’t suck. In fact, we might even find solutions that are downright awesome!

Here are 3 key takeaways:

  1. Upgrade Your Tools: If your accounting team is still relying on outdated methods and tools, it’s time to move on. A modern approach minimizes errors, saves time, and enhances efficiency.
  2. Demand Clarity: You deserve clear, jargon-free communication from your accounting team. Understanding your financials is key to making informed decisions with confidence.
  3. Be Proactive: A great accounting team should anticipate challenges and opportunities, not just react to them. Proactive planning and strategic advice will keep your business ahead of the curve.

accounting team

New Economy Team Members are Experts in Accounting for Entrepreneurs

If you’re dealing with an accounting team that sucks, we’ve got a rockstar team at New Economy ready to make things better.

We’ll help you get your accounting and taxes done, and done right.

Schedule a time to meet with our Founder, Jeff, and discuss how we can help your business survive and thrive each year!

CONTACT US

 (401) 256-2404

CONTACT US

 (401) 256-2404

Grow your business by leveraging your financial data. We’ll show you how.

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