3 CFO Business Tips for Business Owners - Palma Financial

Tips from The Palma C.F.O. Team:

1- Spread out tax payments

Are you meeting with your CPA/CFO quarterly to review your tax plan and quarterly estimated tax payments? The regular C.F.O. meetings eliminate surprises at the end of the year, and making the estimated payments timely will eliminate the late penalties and interest.

If you have trouble saving for your quarterly estimated tax payments, make it monthly.

That way, you can treat tax payments like any other monthly operating expense.

2- Monitor your books

Schedule time each day or month to review and monitor your books, even if you’re working with a bookkeeper.

It will allow you to become more familiar with the finances of your business but also provide you with a window into potential financial crime.

Do not neglect bank reconciliations and spend some time reviewing outstanding invoices each month.

Failing to do this, especially if a bookkeeper is involved, opens up the business to wasteful spending or even embezzlement.


3- Focus on expenditures but also R.O.I.

Measuring expenditures and return on investment can give you a clear picture of what expenses make sense and which may not be worth continuing.

Small business owners should be wary of where they spend their money.

Focus on the R.O.I. that comes with each of your expenditures; not doing this means you can lose money on irrelevant or bad spending bets.

Know where you are spending your hard-earned dollars and how that investment pays off. If it isn’t paying off, cut back and spend on the initiatives that work for you and your business.

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