5 Financial Levers to Increase Cash and Profits in Your Growth Stage Business

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As a growth-stage entrepreneur, you’re constantly thinking about ways to increase cash and profits in your Company. The more profitable you are, the more cash you can invest in people and strategies to support your growth.

Sounds simple, right? 

At New Economy, we’ve used some of these tactics ourselves to grow our revenue from $0 to $2M with a gross profit margin of 50% and net profit of 15%. 

And we want to help you gain control of your finances to make smart decisions to build and grow your Company. 

In this article, you will learn about: 

  1. 7 key financial levers to increase cash and profits and the impact
  2. Top 3 takeaways 

Let’s dive in.

What are the 5 Key Financial Drivers to Increase Cash and Profits?

First off, every business is unique and things vary from industry to industry. However, we believe that there are 5 drivers that each business should focus on.

Here they are:

1. The first driver is Price. Certainly, we all know what price is defined as. It is what we are charging our customers for our goods and services. 

At New Economy, we are being innovative on the pricing front. For instance, we are focused on what we call value-based pricing. We are not thinking about rate and time but more about the value we are producing for our customers. This requires a deep understanding of the customer’s needs, wants, challenges, and goals. From there the goal is to add value to help them meet their goals, remove obstacles, and provide for needs and wants. 

For example, as it relates to achieving goals, it might take us 15 minutes to come up with a solution that will save a customer $50,000 which increases their net profit. We believe the value of that is worth much more than the time that we put into it. So if priced hourly, we would price the service out at $37.50 (15 min x $150) versus pricing it out based on the value, which would be more of an art and say $2,500. Would you pay $2,500 to save $50,000? I know I would.

Here are a few quick questions for you relating to price. 

  • Do you have a process for increasing your prices? 
  • When was the last time you increased your price?  
  • How are you determining your price? 
  • Is your price truly representative of the value you are adding to the marketplace?

2. The second driver is Volume. This is the number of units, services, or hours that you are providing to your customers. Getting back to knowing your customer, is there an opportunity to continue to support their group by adding more of what you do?

We have a customer that installs accessibility equipment in people’s homes to help them age in place safely – a noble mission. They have a contract in place with Veterans Affairs (VA) in several states. Through understanding some of the VA’s challenges, they learned that the VA had veterans from other states in need. The customer then helped to support the VA and its veterans by expanding its geographical footprint. This ultimately led to installing more units, thus increasing the volume which drove up revenue. And as we know, increasing revenue can increase profitability.

More questions for you.  

  • Can you increase the number of units, services, or hours you are selling to existing customers, and how? 
  • Can you offer a different service to your existing customers that will add value in a new way? 
  • Can you enter into new geographic markets and offer value to new customers?

3. The next driver is Direct Costs or Cost of Goods sold. These are the costs that are directly related to producing your revenue. They are your raw materials or your direct labor. These costs are variable with revenue so if revenue goes up then these costs will typically increase as well. But is there a way to decrease them?

Here are a few thoughts on reducing COGS to increase profitability:

  1. Stop making products that don’t sell. There are carrying costs such as warehousing, insurance, and transportation that are tied to this. Get rid of old inventory and stop making it all together.
  2. Negotiate with everyone. Work with your suppliers and look for volume and payment discounts. Also, periodically shop around for other suppliers that might be able to deliver the same value but at a lower cost.
  3. Automate your processes. Maybe you can use a just-in-time inventory system. Or maybe you can create efficiencies by reviewing your purchasing process which will add to cost savings.

The things to consider here are…

  • How you can drive these costs down while still being able to deliver value to your customer? 
  • When was the last time you took advantage of pricing or volume discounts? 
  • When was the last time you negotiated on your pricing?

4.  The next driver is Operating expenses. These are overhead-type costs like rent, insurance, general and administrative costs, software costs, and general salaries and benefits.

This is an area where we have a bit more control than we think. See if revenue is down, there is still a way to hit your net profit percentage by understanding which expenses are necessary to achieve your goals and reducing those that might not be.

Over the past few years, businesses have been challenged in many ways with Covid, supply chain issues, and even finding good help. Further, on the customer side, folks have been much more cautious about spending due to the recession.

We have a customer that provides software directly to consumers in the form of subscriptions. Due to the market downturn, the customer was not hitting their revenue projections. However, they knew that their operating expenses should be 30% of their revenue (they have a budget), so they reviewed their operating expenses, and here is what they did.

  1. They ran a few different scenarios to determine the budgeted profitability by reducing overall operating expenses by 5%, 10%, and 15%. They determine that a 10% cut in operating expenses would still allow them to achieve their budgeted profit of 15%
  2. They went line item by line item through their operating expenses and asked the question, does this expense get us closer to achieving our goals? 
  3. They were able to side with which operating expenses to reduce or completely cut out of their revised budget and started managing against it.

By managing, reducing, and cutting out unnecessary operating expenses, you can achieve your profitability goals even without increasing revenue.

5. The final drivers relate to balance sheet items. Here we are focused on increasing the speed at which we collect on Accounts Receivable and decreasing the speed at which we pay vendors on Accounts Payable. Or possibly even increase the speed at which we pay vendors to take advantage of early payment discounts. 

These two levers are pretty straightforward and are pulled by your accountant. Here are some thoughts about increasing cash flow by pulling on these levers:

  1. Utilize a 13-week rolling cash flow forecast for visibility and decision-making (see NE Blog on this)
  2. Set goals and measure them weekly on AR collections; Have your accountant take ownership of them
  3. Review all of your vendors and see if they offer any early payment discounts that you can take advantage of

We have several customers that have leveraged our 13-week rolling cash flow forecast. This has provided tremendous opportunity and visibility into finding ways to accelerate cash flows.

3 Key Takeaways Related to Increasing Your Cash Flow and Profitability

If you want to build and grow your business, you need to make sure you are focusing on its data components. This will provide assurance that you are maximizing your profits, ultimately increasing your cash flow.

Here are three key takeaways:

  1. Make sure you have someone get into the weeds and understand the impact of the above-mentioned levers. In fact, we suggest completely delegating ownership of this to a capable person like a fractional controller. Functions like this will be in their sweet spot and they can take ownership of helping you to move the needle here (Refer to our blog on fractional controllers).
  2. Expect a positive return on implementing these exercises. We believe that expectations should be created and then you should drive toward those results. We suggest recalibrating your weekly scorecard with new goals and aligning your work to produce the results. Further, consider updating your financial projections based on the revised goals and the levers you are pulling (refer to our blog on financial projections).
  3. Lastly, start slow and go deep. Select one of these areas and have your team spend 90 days working on it. Take the time to see if your revised goals are accurate and if not, understand why. Once you have mastered one of the techniques and achieved the results you are looking for, only then move on to the next lever.

New Economy Team Members are Experts in Accounting for Entrepreneurs

If identifying ways to increase your cash or profitability is not in your skill set or you want to gain control of your finances to make smart decisions to build and grow your business, New Economy is an excellent partner. 

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

Schedule a time to meet with our Founder, Jeff, and discuss how we can add value to your situation.

Smalll business financial statements

Leveraging 3 Key Growth Startup and Small Business Financial Statements to Achieve Your Goals

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In this article you will learn:

  1. What are the 3 key financial statements
  2. How to produce the 3 key financial statements
  3. Why they are important
  4. The top 3 ways to leverage the financial statements to achieve your goals

Why Do Growth Startup and Small Business Financial Statements Matter?

Let’s start with some statistics from the SBA.

  • 66% of businesses with employees will fail in the first 2 years
  • 50% of small businesses with employees will fail by the 5-year mark
  • 70% of small businesses with employees will fail by the 10-year mark

But why is this?

  • 82% experienced cash flow problems
  • 42% experienced a lack of market for the product or service
  • 29% ran out of cash 
  • 23% did not have the right team and place
  • 19% were outcompeted

Yikes, these stats are staggering and a bit scary. However, we believe that good financial statements will help you make smart decisions to build and grow your business. 

Before we move on, check out our several other blogs which address cash flow and team building here. They might give you some peace of mind.

Smalll business financial statements

What are the 3 Key Growth Startup and Small Business Financial Statements?

The 3 key financial statements are the balance sheet, the income statement, and the cash flow statement.

These financial statements should be provided in a timely manner (we recommend the 15th of the month for the previous month). It’s also important that they are accurate so we can use them to access the financial health of the business.

Here is a summary of each statement:

Balance Sheet

The Balance Sheet is a summary of the business at any point in time. It is a statement that shows all of the company’s:

  • Assets (cash & payable receivables)
  • Liabilities (debt & accounts payable)
  • Shareholders’ equity

This financial statement assists the reader with determining things like the company’s ability to meet its debt obligations, the cash reserves in place, or amounts owed to the company in the future.

Income Statement

The Income Statement is a statement that shows the profitability of a business over a period of time. It entails all revenue generated by the business, less direct costs, less operations expenses to determine net income or loss. 

This financial statement assists the reader in determining things like gross profit, net profit, and even certain marketing expenses needed to support revenue generation.

Cash Flow Statement

The Cash Flow Statement tracks the sources and uses of cash over a period of time. 

This financial statement assists the reader in determining where the cash went, such as paying down debt or having it tied up in accounts receivable.

How Are These Financial Statements Produced?

There are a few things that come into play to produce the financial statement. We believe the keys are:

  • People
  • Process
  • Technology 

People

In terms of people, you want to make sure you have the right people in the right seats. Typically, a bookkeeper or accountant does some of the tactical work to start the foundation of producing these financial statements. They will focus on the categorization of expenses, the reconciliation of the bank account, credit card account, and all other basic accounts. 

Then a controller-level person would step in to work on some of the more complex parts of the financial statement like revenue recognition and properly matching up revenue and expenses which is important to have a clear and accurate financial picture of the business. 

Note: Use this article to help you spot the difference between an accountant, controller, and CFO.

Process

As for the process, it is key to getting the desired outcome month over month; from doing the basic categorization all the way to the month-end close. These processes should be documented and examined for efficiency. 

This will ensure consistency and accuracy in the production of the financial statements and plays an important role in the delivery of timely and accurate financial statements.

Technology

As it relates to technology, these financial statements are typically produced automatically in accounting software like QuickBooks Online or Xero. 

Note, there is a bunch of work that goes into producing these financial statements, even though they are automatically generated, which is why people and processes are important. However, the overall technology is pretty powerful and inexpensive.

 

Why Are These 3 Key Financial Statements Important?

We believe they will help you to become a stand-out instead of a statistic. The above-mentioned failure rates are scary and staggering. 

But fear not. 

We believe that these financial statements, and gaining control of them, will help you to make smart decisions to build and grow your business. So no more running the business based on your gut. You will have actual data to support decisions around “Can we afford to hire?” or “Should we invest in this marketing campaign?”. 

We have helped many entrepreneurs. No more confusion. No more sleepless nights. Just peace of mind by leveraging these 3 key financial statements.

Top 3 Ways to Leverage the Financial Statements to Achieve Your Goals

1/ Compare your monthly profit and loss statement to your budget. 

This budget versus actual analysis will help you to determine if you are on track or off track with your annual financial goals. The good news is that if you are off track you know early on and you can create a plan to get things back on track.

2/ Review your monthly balance sheet over a period of time for trend analysis. 

Specifically the cash account. Set a goal around building up your cash reserves to cover a few months of expenses like payroll. Then each month review the cash balance to ensure that the cash balance is increasing month over month to support your financial goal of building cash reserves.

3/ Review your monthly profit and loss and drill down on the actual gross profit percent. 

This is the profit you are making on the goods or services you are selling. Consider creating the ideal gross profit percent and create a plan like increasing prices or negotiating supplier costs to reduce costs and watch this gross profit increase over time.

Smalll business financial statements

Achieve Your Goals with New Economy CPA

Mining value from your financial statements can help you achieve your goals. 

At New Economy, we help entrepreneurs gain control of their finances and make smart decisions by producing and analyzing the information provided in the three key financial statements. 

With our help, you’ll have financial peace of mind. 

We hope this article helped you better understand the three key financial statements, but we don’t want to leave you empty-handed. Try out this free Cash Flow Projection Tool for help managing your cash flow.

How to Create and Follow a Cash Forecasting Model

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To help you understand how to create and follow a cash forecasting model, let us paint a picture for you. 

The Hero

Every hero has a story. And we are big fans of the hero. You are the hero in this story. 

Picture yourself as Luke Skywalker. 

You are the entrepreneur working really hard and doing amazing things. You have guts, passion, and are willing to put it all on the line. We understand where you are coming from and have tremendous respect for you. 

But we also understand that it’s not easy. 

The Problem

In every story, the hero has a problem to solve. Some are more challenging than others, there is a problem we see over and over again. 

Entrepreneurs:

  • Don’t have the financial visibility to know when cash needs will arise
  • Don’t know how to be proactive to avoid these needs 
  • Don’t have the time to pull the information together
  • Don’t have the unique abilities to work through the issues

This is your Darth Vader and it can have massive implications on your ability to build and grow your business. Nobody wants to run out of cash.

The Guide

Another essential aspect of a good story is a guide.

New Economy, with its team of experts, financial tools, and trusted processes, is grateful to play the role of the guide. 

We want to help you solve the problem. We want to help you succeed. We are your Yoda.

In this article, we’ll take the opportunity to explain how we can help you solve this common problem i.e. get rid of your Darth Vader. Specifically, we’ll talk about the importance of visibility around cash flow and the projection tool we use to help our heroes become triumphant. 

The Cash Forecasting Model aka The Tool

Here at New Economy, we believe that entrepreneurs need a tool to see their cash flows out into the future. We like to provide this visibility over a rolling 13-week period. 

Our tool is very easy to use and is accessible by way of Google Sheets. 

It’s our goal to start simple and solve the problem at hand (lack of data for visibility and decision-making), only then will we introduce automated technology and dig deeper into your finances.

You can check out our free cash flow tool here. 

Getting Started with Your Cash Forecasting Model

Before diving head-first into your cash forecasting model, you need to do some planning, investigating, and info-gathering.

This can be a time-consuming process, so be patient and give it the time it needs, ensuring your records are thorough and complete. Keep in mind, hard work now has the possibility to make massive impacts on your business and help you sleep better at night :). 

Here are some simple steps you can take to get started:

  1. Analyze historical spending
  2. Understand spending needs
  3. Cut, reduce, and extend payments
  4. Identify cash flow gaps
  5. Identify solutions to cash flow gaps

As you gather this information, you’ll need to get deep into the “weeds”. Look at your accounts receivable and accounts payable journal and take a close look at historical bank statements since we are talking about cash. These are the source documents that will be utilized to build out the tool. 

We always advise clients to be detail-oriented because the more information you include in the tool, the better your results will be. 

The above data will be utilized to show the cash in and cash out needs of the business. We will be leveraging the historical results to predict the next 13 weeks. 

A great start is to sign up for that cash flow tool noted above which will walk you step by step through the process of building out the tool.

Your Transformation

Nailing down a cash forecasting model comes with plenty of benefits. You’ll gain stronger business processes and intelligence around:

  • Cash collection acceleration techniques
  • Proven effective collection policies
  • Proven effective credit policies
  • Proven effective payment policies
  • Building cash reserves
  • Preparedness on meeting obligations before they occur

Remember when we said a well-built cash forecasting model will greatly impact your business and help you sleep at night? 

We meant it. 

Ending with Success

What does success look like in your story? If gaining financial security establishes itself as a success indicator for your business, our team at New Economy has you covered. 

With our help, we’ll work to help you get the feeling of financial security based on the ability to predict cash flow needs. 

You’ll be able to: 

  • Know when, where, and how your cash flow needs will occur
  • Know the best resources for meeting cash flow needs (Debt, Equity, Factoring)
  • Prepare to meet those needs in advance
  • Set goals for building cash reserves
  • Set goals for paying down debt
  • Improve collection processes and techniques

Your success is important to us and as a recession looms, cash forecasting models need to play an even larger role in your financial management processes as they can prepare your business for what’s to come. 

If you want to learn more, schedule a time to meet with Jeff, the Founder of New Economy! We help entrepreneurs gain control of their finances to make smart decisions to build and grow their businesses.

We’d love to be a part of your story.

Use Efficient Data to Reach Business Financial Goals

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If you are a typical business owner, there’s a good chance you wake up at 2 am some mornings with an uneasy feeling – trying to crunch numbers in your head and get an accurate pulse of what’s going on in your business. But with out-of-date and tough-to-read data, things just aren’t adding up. 

So you take the pulse based on your gut. But deep down, you know this isn’t going to get your business where you want it to be. 

New Ecomony’s solution – formulate your data in a way that allows you to consistently and accurately take the pulse of your business so you can take effective action.

If this sounds good, read on.

business financial goals

Do You Have Business Goals? 

Goals are defined as a desired result that you, or a group of people, plan and commit to achieving. Does your business have them? If not, you should. 

Here are some of our best tips for setting goals for your business: 

Get Your Team Involved 

Your team is full of ideas and has an interest in the success of your business. Get them involved. Get their buy-in, and gather their thoughts and ideas. Lean into what they have to say and use it to help you build out your goals. 

Think Through Your Priorities

Think of your top 1-3 priorities in your business that need to be focused on to move it forward. This may take some deep thought and serious evaluation, but it will be worth it. 

Ask yourself:

  • Where is your business now? 
  • What are you trying to accomplish? 
  • Where are you trying to go? 

Your goals should help you accomplish your priorities. 

Create SMART Goals

Following the SMART goals framework helps you build good goals. 

Here’s what we mean:

  • S – Specific 
    • Make your goals specific and narrow.
  • M – Measurable
    • Define how you will measure your success towards reaching the goal.
  • A – Achievable 
    • You have to be able to accomplish your goal. Don’t set the bar too high. 
  • R – Relevant
    • Make sure your goals align with your priorities.
  • T – Time-based
    • Set a realistic end date for reaching your goals. 

Document Your Goals 

Once you’ve built out your goals, document them. 

Make them clear to your team. 

Hold yourself accountable. 

Having goals won’t do you any good if you are the only person who knows they exist. 

What Does Your Data Look Like? 

Financially speaking there are certain data components that can help to determine if you are on or off track. When you track the right data, you have the opportunity to make decisions to right the ship when things are off track.

Here’s what your data should look like: 

Every Business Should Have a 1, 3, and 5-Year Financial Plan

A strong financial plan will be broken into 1-year, 3-year, and 5-year segments. You’ll be able to refer back to your financial plan to bring the business you want to life. Think of it as a roadmap. 

You can break your financial plan down by month and measure it against actual financial results. This is the KEY. If something is off, you need to be able to gain an understanding as to why. 

Assign ownership to an individual to get to the root cause and offer up suggestions to get things back on track.

By following along with your plan, you can also narrow down what resources are needed as you go, like: 

  • Cash
  • Customers
  • Employees
  • Equipment 

As you build out your financial plan, use our top 4 financial tools to guide you. 

Use a Weekly Scorecard 

Every business should have a weekly scorecard. At New Economy, we believe a good Key Performance Indicator (KPI) in the form of a scorecard will help you manage data and provide you with a pulse of your business on a consistent basis. This will allow you to take prompt, effective action.

Here’s how you can create an effective scorecard: 

  • Identify and agree on the top 10 items to measure
  • Make someone accountable for each measure
  • Create goals for each measurable
  • Make the measurable time sensitive
  • Make someone accountable for getting the measurable and filling in the scorecard each week
  • Use it

Each Team Member Should be in Charge of a Measurable

Keeping track of your measurables is essential, but the task shouldn’t just fall on one person’s shoulders. Give everyone on your team a number to keep track of. Doing this: 

  • Cuts through murkiness between manager and direct reports
  • Create accountability
  • Provides clarity and commitment 
  • Produces results (this is a big one as we are trying to use data to drive towards our goals) 

For example, if you are a service-based company, you might measure revenue by employee, and each employee understands what is expected of them. If they achieve their measurable, which should be aligned with the business goals and overall measurables, then you have a high degree of alignment and can rest assured knowing team members rowing in the right direction.

business financial goals

Bring Your Data to Life, Achieve Your Goals

By having a Financial Model, Weekly Scorecard, and Individual Measurables, you are bringing to life the data road map which can be utilized to help you achieve your goals. 

A few final thoughts to remember before you put the plan into action:

  • Be open to learning. What is the data telling you?
  • Dig deep. Is something off track? Get to the root cause.
  • Apply what you have learned and get things back on track.

If you’re searching for a financial partner to help you use efficient data to reach your business goals, schedule a call with our Founder, Jeff! Our mission is to help entrepreneurs gain control of their finances so they can make smart decisions to build and grow their businesses, and we’d love to help you!

Prepare for a Recession with this Cash Flow Projection Template

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Unfortunately, a recession is on the horizon and if you want your business to weather the storm, it’s time to start preparing. 

 

At New Economy, we have 5 strategies we suggest focusing on to get through this tough time. Each strategy is important but you’ll soon realize that managing your cash lands high on the list. 

 

We’ll explain more below and let you know how you can use our cash flow projection template as a tool for success. 

Use These 5 Strategies to Weather the Storm of a Recession

1. Manage Cash Well 

Cash is the lifeblood of every business. This means managing it well is essential for survival. Here’s how our team at New Economy suggests you manage your cash:

Plan and Process

Your business needs a solid plan and fool-proof processes to properly manage its cash. You can do this by:

  1. Analyze historical spending
  2. Understand spending needs
  3. Cut, reduce, and extend payments
  4. Identify cash flow gaps
  5. Identify solutions to cash flow gaps

Transformation

The way your business is managing its cash now may not be sustainable through a recession. You’ll need to build stronger business processes and intelligence around: 

  1. Cash collection acceleration techniques
  2. Proven effective collection policies 
  3. Prove effective credit policies
  4. Proven effective payment policies
  5. Building cash reserves 
  6. Preparedness on meeting obligations before they occur

Ending in Success

Properly managing your cash is an ongoing process, but eventually, you’ll earn a feeling of financial security based on your ability to predict cash flow needs. To create this feeling, you’ll need to: 

  1. Know when, where, and how your cash flow needs will occur
  2. Know the best resources for meeting cash flow needs (debt, equity, factoring)
  3. Be prepared to meet those needs in advance
  4. Set goals for building cash reserves 
  5. Set goals for paying down debt. 

2. Know Where Your Business Stands – No Sugar Coating

As a business owner, you need to have a strong pulse on your business. This means diving deeper into a few key areas to ensure the needle is moving in the right direction. 

 

Not to be overlooked, the health of your team and culture play a major role in the success of your business. Team members need to be on board and understand how their work plays a larger role. 

 

Keep a close eye on your goals as well. Regularly take the time to ask yourself if you are on or off track with your goals and one-year plan. Understand why and what needs to change to get or keep the business on course. 

 

To no surprise, analyzing financial performance is key to understanding where your business stands. Are you meeting key targets, like: 

  • Revenue? 
  • Gross profit?
  • The budgets for operational costs?

 

Dig deep to know where you are at and what may need to change. 

3. Turn Up Your Leadership

Companies rise and fall based on leadership. Your role as a business owner is to serve as a leader for your team. 

 

Here are a few of the ways you can become a stronger leader: 

  • Give clear direction on the vision
    • Create openings and opportunities for the team to connect. Be compelling and bang the drum. 
  • Provide the necessary tools for the team
    • They’ll need training, technology, and most importantly time and attention to help the succeed.
  • Act with the greater good in mind
    • One of your roles is to focus on long-term outcomes. Help your team understand how their work now impacts the greater good of the company. 
  • Keep expectations clear and communicate well.
    • We can’t stress this enough – communication is key! 

4. Run Scenarios 

There are plenty of different directions your business could turn in a recession. To best prepare, you need to have the ability to do “what ifs”. Scenario planning, aka financial modeling, offers you the ability to get a glimpse of potential outcomes for your business. 

 

With good financial modeling, you’ll get future visibility by month to make decisions. 

 

Our advice: Play with the assumptions to determine the outcome. For instance, lower your revenue by 10% to see the implications on cash flow and profitability. Perhaps then, you reduce your operating expenses to achieve the same profit margin. 

 

Again, understanding where your business could be headed will help you make quicker, more educated decisions. 

5. Find Opportunities 

Just because a recession is typically a negative experience, it doesn’t mean there aren’t hidden opportunities. 

 

For example, layoffs are abundant, but this also means there is top talent being let go. Look for that talent and add them to your team. 

 

You may also run into a business that is not adequately prepared or is struggling. This may provide an opportunity for a merger or acquisition. Keep your eyes and ears open. 

 

Other struggling businesses may not be serving their customers well, providing you an opportunity to acquire new customers. 

As a reminder, our team at New Economy helps entrepreneurs gain control of their finances to make smart decisions to build and grow their businesses. 

 

One of our favorite tools to use to do this is our cash flow projection tool. It will help you understand how to plan your budget in advance and see how much money will be coming in and out over time. You can grab it for free here.

If you have any questions or would like assistance in preparing your business for a recession, schedule a call with our Founder, Jeff! He’d love to learn more about your business and explain how New Economy can help!

What Will it Cost me to Outsource my Accounting?

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Outsourcing accounting is trending in the business world. 

Depending on the role you choose to outsource, entrepreneurs reap many benefits, like: 

  • Accurate and timely financial insight
  • Strategic support and guidance
  • More time to work on the business instead of in it
  • Cost savings

If you’re exploring this option for your business, one of your primary questions is most likely, what will it cost me to outsource my accounting? 

The following article will answer this question based on New Economy’s numbers so you can have a rough estimate of the total cost savings you’ll receive from outsourcing your accounting. 

Know What You Need

Before you begin to think about the cost of outsourcing your accounting, you need to be clear on the kind of service you need, whether it be an accountant, controller, or CFO. 

Each service has a different function, so you want to make sure you’re outsourcing based on your needs. 

An accountant is tactical in nature and takes care of the basic financial management that is required for compliance and business success. 

A controller is a bit more experienced and typically leads the accounting staff. They’ll have more insight into your business and have the ability to make operational improvements to your financial system. 

A CFO is a strategic partner and will work with the CEO to perfect the business model and ensure the business is meeting its financial goals. 

For more detail about each role, check out our article on the topic. It’ll help you select which service is the right fit for your business so you can properly outsource your accounting. 

Let’s Define the Cost Savings (Sorry for the data and detail, we are number crunchers!)

The cost of hiring a full-time employee can pile up, and this is before you even think about the time and salary. 

However, outsourcing your accounting to New Economy offers plenty of cost savings in a few key areas. 

Training Investments

IT and Technology

  • We cover all of the IT and technology investments which is roughly $5k per employee each year. 

Fringe Benefits

  • We cover all of the fringe benefits including payroll taxes, 401k match, and health insurance. To put this into perspective, this means we are investing between $15K-$20k per employee each year based on a $75k salary. 

Management Time

  • We cover all of the management time on each account which can be a bit more challenging to quantify. However, you are now valuing your own time. 

So as you can see, New Economy covers anywhere between $25k-$35k in costs that, when you outsource your accounting, you do not have to assume. And keep in mind, these numbers don’t include salary. 

Before we Jump into Salary, Consider the Time that You Need

When you take into account the costs above and include a salary of $75k per year, you’re now shelling out anywhere between $100k-$110K for a full-time employee. However, this begs the question, do you really need a full-time employee? 

We are learning that many internal accounting hires are pulled into operations or admin work. When this happens, they are being overpaid and under-challenged. And you run the risk of losing them.

To avoid this, you need to understand the true time needs in accounting. This will reduce your investment in this area. 

For example, a full-time controller could cost between $80K-$125K, but if you only need a 50% schedule, your cost will reduce dramatically. 

Now onto Salary, Keeping in Mind we are Focused on Growing Small Businesses and Startups

Let’s take a look at the typical salaries for hiring full-time: 

  • A new accountant can cost anywhere from $55K-$65K
  • An experienced accountant can cost anywhere from $65K-$80K
  • A Controller can cost anywhere from $80K-$125K
  • A CFO can cost anywhere from $125-$200K

In our experience, most growing small businesses and startups don’t need full-time accounting help. 

So the true cost savings of outsourcing your accounting while still obtaining top-tier talent would be: 

  • $25K-$35K on technology, training, and benefits
  • 20%-30% of the salary by leveraging the team member in their unique ability and removing all admin and operational type work

Interested in Outsourcing Your Accounting to New Economy? 

At New Economy, we believe outsourcing is a great way to help you gain control of your finances to make smart decisions to build and grow your company. 

Our team comes from a great culture where they are nurtured and developed and we are proud of the awesome service they deliver. 

Based on the above, you can see that there can be significant cost savings in outsourcing your accounting.

If you are interested in learning more about our service, reach out to us today!

Do You Know the Difference Between an Accountant, Controller, and CFO?

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Accountants, controllers, and Chief Financial Officers (CFOs) can all play an essential role in a finance department.

However, the size of your business, your business needs, and your business goals, will all play a part in determining which role you need to hire for. Making the right decision is crucial and can completely change the trajectory of your business. 

This article will touch on the importance of knowing the difference between an accountant, controller, and CFO and cover the key differences between each. 

Let’s dive in. 

Knowing the Difference is Important

Accountants, controllers, and CFOs all provide different services. Each role fills different needs within a company, so before you make a hire, you need to be clear on exactly what areas of your finances need attention and which role will best fit those needs. 

This will ensure you are bringing on team members who have the skillset required to meet those needs. 

Knowing the difference and choosing the right role before making a hire also ensures: 

  • You are not overpaying
  • You are not under-challenging or over-challenging the team member based on their unique skill sets as compared to the functions needed
  • You are building a solid foundation for your accounting team 

When you are clear on your company’s needs and hire the right person to match the role, you’ll see better results.

Let’s Cover the Differences 

Here is a general overview of the role of an accountant, controller, and CFO so you can be aware of the differences and make a hire that best fits your company’s needs. 

Accountant 

An accountant is someone that is tactical in nature. They do the groundwork and basic financial management that is required for compliance and business success.

Accountants handle things like: 

  • Bill paying
  • Payroll 
  • bank recs
  • Invoicing
  • Expense categorization 

An accountant will be under you or whoever is in charge of your company’s finances and will likely need supervision and training. They will handle the tasks needed to keep everything in order while maintaining and compiling the information you need to make financial decisions.

Controller

A controller is someone who is more experienced than an accountant and has a solid understanding of GAAP and the business. They’ll take the time to really understand your goals and use that information to improve your finance department. 

Controllers typically lead and manage other accounting staff as well as select and implement the processes your financial system needs to succeed. 

Your executive team will benefit from a controller because they deliver timely and accurate financial information. This information is typically derived from historical results which, as you know, can be very helpful and identifying trends and spotting issues before they turn into larger problems. 

Overall, a controller will have more insight into your business and have the ability to make operational improvements to your financial system when needed. 

CFO

A CFO is a strategic partner. They take on the higher-level role of managing your entire accounting department and its processes. Everything that happens within your finance department will be overseen by your CFO, including: 

  • Cash flow strategy
  • Business strategy
  • Creating budgets & forecasting
  • Oversee the entire accounting team

CFOs work closely with the CEO and have a strong understanding of the business and its goals. They spend time perfecting the business model and supporting the strategic direction of the company. 

You’ll turn to your CFO for advice on the basics like improving profitability and building cash flow but also for strategic support regarding organizational changes like mergers, acquisitions, and IPOs and negotiating vendor contracts. 

CFOs will also prioritize capital, ensuring your business has what it needs to fully execute its plans and reach its goals. They are skilled in building relationships with investors and are well-versed in capital-building strategies and can apply that information to best serve your business. 

Pick a Role That Meets Your Needs

While each role can make a massive impact on the financial health of your business, they are all unique. 

Before making any decisions, you need to lay out your needs and sort through the areas where additional help could be of benefit. From there, refer back to the roles of an accountant, controller, and CFO to determine which best fits your needs. 

Ensuring the people you hire fit into the role you are looking to fill is the best way to set them and your business up for success. 

However, if you’re looking for a more cost-effective approach than hiring an in-house accountant, controller, or CFO, consider reaching out to New Economy. 

We aim to help entrepreneurs gain control of their finances and make smart decisions by offering each of these roles for a much lower price than a full-time employee. 

We would love to meet with you and learn more about your needs so we can direct you towards the right role for you. Contact us today to learn more!

What to Ask When Interviewing an Outsourced Firm (and How New Economy Answers)

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As your business grows, so will your financial needs. You’ll start to require: 

  • More time for financial management, 
  • A stronger understanding of your financial information,
  • Better tools and resources to ensure timely and accurate numbers.

 

At this point, many businesses choose to outsource their accounting, which solves and helps avoid the problems listed above. 

However, like hiring a new employee, outsourcing your accounting requires an interview process. You have to make sure you select the right firms – one that will grow with you and wants to see you succeed. 

The rest of the article provides several questions you should ask while interviewing an outsourced firm and how we, New Economy, answer them. 

How Do You Manage Capacity? 

Capacity management should be of utmost importance when choosing where to outsource your accounting. You want to be confident that your finances are a priority and that none of the work you are outsourcing is slipping through the cracks.

At New Economy, we take three extra steps to manage our capacity: 

  1. We have a second team member trained and take a team approach in case of turnover. This ensures that no matter what happens on our end, we are still able to prioritize your finances. 
  2. We leverage a schedule for time-blocking. Time-blocking allows us to dedicate time to your project so we accomplish what needs to be done. 
  3. We have an operations team in place. Our operations team keeps everything running smoothly, helps to eliminate bottlenecks, and is always looking for ways to improve workflow. 

How Do You Train and Develop Your Team? 

In the same way you care about building a strong team for your business, you should also care about the team you outsource your accounting to. 

They should be well trained, experienced in their field, and always working towards growing as professionals. 

Training and developing our team is key to best serving our clients. New Economy team members each get 40 hours of training upon hire. From there, we create quarterly development rocks to help each employee work towards their goals. 

Do You Have Any Industry Focus? 

Selecting an accounting firm that is experienced in your industry is a key factor in making your final decision. 

An industry-focused accountant will be able to help you track the right metrics, make strategic decisions, and plan for long-term growth. They’ll know what works in your industry and what doesn’t so you can avoid the what-ifs and start improving financially as a business. 

At New Economy, we work with investor-backed startups and growing small businesses. Most of those are technology and service-based companies that range from pre-revenue to $50 million in revenue. 

If your business falls into any of those categories, New Economy may be a good choice as your outsourced accounting firm, simply because we have a strong understanding of your industry.

How Do You Set Up Pricing and Fee Structure? 

Pricing is rightfully a major concern for businesses looking to outsource their accounting. Typically, accounting firms operate on one of two styles of pricing: 

  • Hourly 
  •  Fixed Fee

Hourly billing works as it sounds – you are charged by the hour for services.

Fixed fee sets a monthly retainer. The focus is more on the value of the service being provided, within the agreed time

You should select a firm whose pricing and fee structure best suit your needs.

New Economy has fixed fees as we are focused on the value delivered as opposed to the billable hour. Additionally, we revisit fees quarterly to make sure everyone is still benefiting economically. 

What is Your Proven Process for Service Delivery? 

Be sure to ask the firm you are interviewing what their process is like for delivering services. You deserve a clear understanding of how things work from start to finish. 

This will give you insight into their priorities and workflow management, as well as set clear expectations for the relationship. 

At New Economy, our process for service delivery is broken into three primary areas. 

The first is taking the time to learn about your business and its needs through several sales Zoom calls leading up to a signed contract. 

The second is an onboarding Zoom call to set timelines and expectations for our work. 

Finally, we will set weekly and monthly calendar check-ins to measure against expectations. 

Our goal is to help you get the most out of your business, and by following this process, we will be able to fully understand you and your business, create a customized plan to help you reach your goals, and provide deliverables with progress updates and more. 

Interested in Outsourcing to New Economy?

If after reading you feel New Economy might be a good fit, schedule a time to meet with Jeff, our founder today! 

We help entrepreneurs gain control of their finances and make smart decisions and would love to learn more about you, your company’s story, and how we can add value to your situation! 

Top Ways to Prepare for a Recession

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Talks of a recession are growing as the economy continues to feel the negative effects of the Corona Virus and the war in Ukraine. 

Both have led to lingering supply chain issues, inflation reaching record highs, capital markets tightening up, and talent shortages across nearly every industry. 

For small business owners, a looming recession can be frightening. The last recession, which began in 2007 and lasted through 2010, forced nearly 1.8 million small businesses to go under. 

Now, business owners are intimidated and again struggling to keep up and adapt to a market that is trending downwards. 

However, there’s no need to fear, there is still time to prepare and strengthen your business for a potential recession. Here are some of the top ways to do it:

Review Your Expenses in Detail

As you prepare to fight the storm of a recession, the first place to look is your expenses. You’ve likely already sifted through your expenses and cut back in places where you were overspending or spending unnecessarily, but now it is time to go back to the drawing board. 

Instead of starting with all of the expenses you can cut, start by defining your necessary expenses. 

  • Rent
  • Utilities
  • Inventory 
  • Insurance
  • Employee salaries
  • Etc. 

From there, crosscheck these necessities with your current spending habits. What expenses don’t fit into these categories? 

This will give you an idea of what expenses you can do without when the time comes to save money. 

Manage Your Cash Flow Weekly 

We’ve said it before, and we promise to say it again, cash flow is the lifeblood of your business. It’s a strong indicator of financial health and without a positive cash flow your business won’t survive a recession. 

You can build your cash flow by: 

  • Tracking related metrics and utilizing forecasts to produce better outcomes.
  • Keeping a close watch on your accounts receivable by collecting payments on time and knowing what you are owed.
  • Updating vendor and partner contracts to ensure you are not overpaying. 
  • Running a pricing analysis to ensure you are still charging the right prices. 

As you start implementing these strategies, remember to wrap your arms around your cash flow and manage it weekly. 

New Economy’s FREE Cash Flow Projection Tool can help you do just that. It was built to help you predict your cash flow and make smart decisions about spending and saving. With our tool, you’ll be able to see all of the inflows and outflows that affect your bottom line over time so that you can plan ahead with confidence. 

Run Scenarios in Your Financial Projections

Your financial projections can determine how well your business copes with the effects of a recession. They’ll use previous data to help you indicate where you may see problems down the road. 

As you prepare for a recession, you should create financial projections for what would happen if you cut expenses, saw changes in revenue, increase or decrease your prices, and so forth. This will give you better visibility as you navigate the downturn and help you make the right decisions to keep your business afloat. 

Revisit Financing Options Now

Before it’s too late, explore your financing options. Now is a great time to speak with lenders or investors, apply for grants, or even start a crowdfunding campaign. 

However, be clear with how much additional cash you need to raise before you dive in. You can use the free cash flow tool here, as well, to gain greater visibility and determine how much you may need to survive a recession. 

Get Accurate and Updated Financials

Knowing where your business stands at all times is key to preparing for and withstanding a recession. 

There are multiple tools you can use to get accurate and updated financials. The top four tools include: 

  • Cash Flow Tool
    • As we mentioned, this helps measure the inflows and outflows that affect your bottom line.
  • Weekly Scorecard
    • This includes the KPIs you need to reach your business goals.
  •  Financial Projections
    • These are predictive analyses you can use to help you make informed decisions. 
  • Month-End Close
    • This is a monthly recap of your financial statements. By following the steps needed to complete your month-end close, you’ll also be staying on top of your finances month-to-month, which is essential for preparing for a recession. 

New Economy Can Help You Prepare

For business owners, the thought of a recession can be intimidating. However, with preparation, you can ensure your business comes out on the other side. 

We’ve covered the importance of reviewing your expenses in detail, managing your cash flow weekly, running scenarios in your financial projections, revisiting financing options, and getting accurate and updated financials, but if you’re still struggling to prepare for a recession, turn to New Economy for guidance!

We help entrepreneurs gain control of their finances to make smart decisions to build and grow their business – and that includes before, during, and after a recession. Contact us today to learn more about how we can help!

Top 4 Financial Tools for Success

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Financial tools are the drivers behind successful businesses. They bring simplicity to tasks that can otherwise be complicated and time-consuming. 

Thankfully, financial tools can be used in nearly every corner of your financial system. At New Economy, we suggest using four primary tools to help entrepreneurs, like you, gain control of their finances to make smart decisions to build and grow their businesses. 

Here is an overview of each of these helpful financial tools: 

Tool #1: Cash Flow Tool

Cash flow is the lifeblood of your business. You need cash on hand to handle basic tasks, like: 

  • Paying employees and suppliers
  • Buying inventory
  • And leveraging business growth

However, measuring how much cash is flowing in and out of your business can be difficult, especially if you don’t have a solid tracking system. Making smart decisions about saving and spending gets complicated and you often lose the ability to properly grow your business. 

This is where the free cash flow tool we created at New Economy will come in handy. With it, you can see all of the inflows and outflows that affect your bottom line over time so that you can plan ahead with confidence. 

Visit https://neweconomycpa.com/free-offer/ to access our free Cash Flow Tool.

Tool #2: Weekly Scorecard

Scorecards include a combination of the KPIs you need to reach your business goals. 

They are built specifically for your business and give you a look into your performance over a set amount of time, in this case, a week. 

As you craft your weekly scorecard, try not to overthink it. Focus on including only four or five of the most important metrics.  

To select your metrics ask your team how they would measure a good week. This could be anything from making “X” number of sales to having “X” amount of money in the bank. In general, you should include metrics that provide information related to revenue, client acquisitions, efficiency, and profitability.

In addition to your weekly financial scorecards, you should create weekly scorecards for other departments as well. This gives you a good idea of what is going on in your business across the board.

Tool #3: Financial Projections 

Financial projections are essential tools for every business. They are predictors of where your business is headed based on previous data and indicate when you may have problems with cash flow, pricing, or overspending. 

With your projections and current data, you can also evaluate the state of your business, structure big-picture ideas, assess risk, and take action for business growth.

For example, let’s say you believe increasing prices will help you generate more profit but are worried you’ll lose too many customers. Financial projections will predict where your business will stand financially after raising the price. With that information, you can create the best course of action moving forward.

Tool #4: Month-End Close

By now you have probably figured out the importance of leveraging your financial information to make business decisions. You can find everything you need to run a successful business with your numbers, however, if you don’t have a good process for doing so, you’ll miss out on plenty of opportunities. 

The best way to ensure you are mining value from your numbers is to build a month-end close process. Essentially, this will be a combination of complete and timely financial statements you can use to help you make business decisions. 

While you should build a month-end closing process that works best for your business, here are the key things to keep in mind: 

  • Record
    • Make sure all revenue and expenses have been recorded
    • Record accrued liabilities, including payroll, employee vacation, notes payable interest expenses, and taxes
    • Review fixed assets and perform an inventory count
    • Post journal entries for depreciation and amortization
  • Close
    • Reconcile cash, checking, and savings accounts, petty cash fund, and credit card accounts 
    • Reconcile prepaid accounts 
    • Reconcile intercompany accounts to ensure payables and receivables match between both businesses
  • Analyze
    • Generate an adjusted trial balance and draft income statement, balance sheet, and A/R and A/P Aging Reports
    • Review analysis with stakeholders
  • Report
    • Prepare management, FP&A, and external/SEC reporting
    • Assemble required documentation for internal and external auditors

As you go through your month-end close process, take your time and rely on automation as much as possible. Remember, this is an essential piece to a successful business. 

Want Help Incorporating These Tools into Your Financial System?

Each of these tools adds a tremendous amount of value to your financial system. They monitor cash flow and overall business performance, as well as give you an idea of where your business is headed and help you nail down the numbers you need to make better business decisions. 

Properly leveraging these tools leads to a successful business, so if you need assistance in this area, consider New Economy!

We help entrepreneurs gain control of their finances to make smart decisions to build and grow their business. Contact us today to learn more!

5 Ways to Manage Cash Burn and Runway

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Every business, especially new startups or quickly growing businesses, should be keeping a close eye on their cash burn and runway. 

These metrics provide essential insight into the sustainability of your spending habits and the financial health of your business. If cash burn and runway are struggling, your business will also struggle. 

Below is an overview of what exactly cash burn and runway mean for your business and how you can manage them. 

What is Cash Burn?

Cash burn is a measure of how quickly your business uses your cash balance. In other words, cash burn is the measure of how much cash is flowing out of your business. 

Typically, cash burn is measured on a monthly basis. However, in some cases, when the need to use cash increases, it can be measured on a weekly or even daily basis. 

Why is Cash Burn Important?

Cash burn rate is a great indicator of the overall health of your business. It shows you:

  • How long you have until you run out of cash
  • If you have a healthy cash flow
  • How fast you are spending the money you have on hand

It’s important to find a healthy cash burn rate. In fact, a recent study shows that nearly 82% of businesses fail because of cash flow problems. 

If you are spending your cash too quickly, it can lead to a failed business. If you aren’t spending your cash fast enough, it can indicate a lack of growth and investment in your business.

For young businesses and startups, cash burn is especially relevant. Typically, profits are low during this time, which means managing your spending is even more important. 

How to Calculate Cash Burn

Cash burn for any given period of time is fairly easy to calculate. First, you have to identify your start and ending cash balance (found on your statement of cash flows) and then find the difference between those numbers. Next, you divide the difference by the number of months in the given period. The total is your monthly cash burn rate. 

Here is an example:

$300,000(starting balance as of Jan 1) – $120,000(ending balance as of March 31) = $180,000(difference)

$180,000(difference) / 3 (number of months in the period) = $60,000 monthly cash burn rate

Now that you know how quickly you are going through your cash, you need to determine how long you can withstand that spending rate. This is referred to as your runway. 

What is Runway and How is it Calculated? 

Runway is the amount of time your business can continue to operate with your current cash burn rate. Like burn rate, a healthy balance of runway is essential for any business. 

If you have a short runway, your business is quickly running out of time to survive. However, while a long runway sounds appealing, it could also mean you are not properly allocating your cash reserves. 

To calculate your runway, simply divide your total cash reserve by your burn rate. 

For example: 

$120,000(total cash reserve) / $60,000(burn rate) = 2 months left before your business runs out of cash. 

Tips for Managing Cash Burn and Runway

Ideally, your business will have a negative cash burn rate. This would indicate that you are bringing in more money than you are spending and would, therefore, lengthen your runway. 

Here are several proven ways to manage your cash burn and runway:

1. Reduce or Defer Non-Essential Expenses 

You’ll want to take a close look at your budget to determine if your expenses are bringing value to your business. 

Find where you can cut, reduce, or defer certain expenses. However, make sure your changes are sustainable. Making too many changes too quickly can stunt growth.  

2. Pay Bills Slower

If you aren’t reaping a benefit from paying your bills before they are due, hold off on your payments. 

This allows you to hold on to your cash for longer periods of time. 

3. Bill Sooner and Collect Faster

If you’re struggling with your cash burn and runway, one of the best adjustments is collecting your money sooner rather than later. 

Send your invoices right away and include terms for payment. If you’re struggling with collecting payments in general, try implementing a late fee or improving your collection methods. 

4. Raise Additional Funds 

Many new start-ups and small businesses have to go through multiple rounds of funding before they start seeing substantial profits. 

After calculations, if your cash burn and runway are not where you want them to be, consider raising additional funds. 

5. Increase Prices 

Inaccurate or low prices can negatively impact your profits. If you’re looking for more cash inflows, consider running a pricing analysis. Chances are, you’re charging too little for your products and/or services. 

Our Free Cash Flow Tool Can Help

Having clear predictions of your cash burn and runway can mean the difference between success and failure for your business. 

That’s why we put together a free cash flow tool that lets you plan your budget in advance and see how much money is coming in and out of your business over time. 

With the help of New Economy, you’ll gain control over your finances and position your business for success! Contact us today to learn more ways we can help you!

Why Companies Choose New Economy as an Outsourced Accounting, Finance and Tax Partner

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New Economy was designed to help entrepreneurs gain control of their finances and make smart decisions to build and grow their business

As an outsourced accounting, finance and tax partner, we do this by making you the hero (think Luke Skywalker), identifying your problems and challenges (think saving the galaxy), and we come in and play the role of guiding you to financial success (think Yoda).

We believe you deserve financial confidence to grow your business and want to be the reason you fall back in love with being an entrepreneur. 

Here’s how we will get you there: 

You are the Hero 

This is all about you. Your dreams. Your business. Your finances. Your success. 

Being entrepreneurs ourselves, we understand the ups and downs that you are going through to build your business. We understand how hard it is but we also know you’re up to it as you have plenty of passion, guts, and vision.

And we know, there are plenty of challenges awaiting our Hero. And every great hero needs a guide helping them solve problems and pointing them in the right direction behind the scenes. 

Every Hero has a Problem

As an entrepreneur, your issues and problems are abundant and financial issues can be overwhelming at times, especially since you didn’t start your business to manage the books, taxes, or accounting systems and processes. 

Some of the problems you may run into are: 

  • You lack the financial visibility to make decisions that drive your business forward. 
  • You are not getting your financials in a timely manner, meaning you lack real-time data and the ability to make quick changes to get your business back on track.
  • You have inaccurate financials, giving you a misrepresentation of your business. You are struggling to get the right person in the accounting and finance seat to move at your speed and provide timely and accurate financial information to build and grow your business. 
  • You are using processes and technology that aren’t adapting as your business is growing, which is causing inefficiencies and costing you money.
  • You are lacking strategic business or tax support.

Each of these issues puts your business in a tough position. They inhibit growth and add more work to your plate.

The Vision for Success

Having a great understanding of the problems and challenges facing entrepreneurs puts us in a  position to add value and help you achieve your goals.

So imagine the following:

  • Having a partner that is providing accurate financials on time that you can trust
  • Having a partner that will help you leverage financial information to make decisions
  • Having a partner that will help to ensure your financial systems and processes are working efficiently and evolving to meet the needs of the business
  • Having a strategic partner to help support the growth of the business
  • Having a strategic partner to ensure you are keeping up with the evolving tax changes  

Imagine a world where you don’t have to worry about anything financial, accounting or tax-related and where you can spend your time focused on growing your business.

That’s where New Economy comes in as the guide.

We are the Guide to Success

At New Economy, our passion is to Unleash the full potential of the Entrepreneur.

We have come alongside many Entrepreneurs helping to put their pain points and problems at the center of our focus. This is why we’ve created a team and culture that is thirsting to make an impact and add value. 

Our goal is simple: to guide you to get the most out of your business finances so you can do what you love. 

In fact, our tagline is: Helping entrepreneurs gain control of their finances and make smart decisions. 

We truly believe with our support, your business can achieve the success you’ve envisioned from the beginning.

Here is what a few of our Heros have to say:

Linda Bohmbach – Owner/President of Sales at Home Healthsmith

“We have felt uncertainty and concern about how the business was performing financially. But then we found New Economy! They helped us understand our financials better by providing cash flow projections, a budget, and a projection. These tools have removed some of the fear and uncertainty and helped us with decision-making. But the best is they are entrepreneurs just like us.”

Erica Wennerstrom CFO/ COO at Framework Homeownership

“I first found New Economy in 2016, when I joined a technology startup whose accounting processes and technology stack were lagging and not operating effectively. With their partnership, I was able to modernize our financial operations and count on timely and accurate financials. 

I have since worked with New Economy at two other companies, and each time relied on the New Economy team to help me tackle key financial operational challenges, including revamping the Chart of Accounts and financial statements, implementing new systems, and dealing with sales tax liabilities. 

Even in the midst of large operational projects, New Economy ensures that I always have a handle on the numbers to make smart decisions and a team I can count on. THANK YOU!”

Su Sanni – CEO at Dollaride

“Dollaride is a growing venture-backed startup. We’ve been focused on growing our business, but needed a partner that could step right in to provide us with financial visibility and own the process. The team at New Economy has helped us to get organized. 

Every month, they also provide key financial information that enables us to make smart decisions that build and grow our Company. We enjoy working with New Economy and highly recommend them!”

Want to Learn More About Working with New Economy as an Outsourced Accounting, Finance and Tax Partner? 

If you want to gain control of your finances and make smart business decisions, New Economy is the outsourced accounting partner for you. 

With our help, you’ll get the most out of your business and fall back in love with being an entrepreneur. 

Schedule an appointment with us so we can get an understanding of who you are, where your challenges lie, and how we can help.

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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