Biz Tip: As a business starts to grow and go beyond a handful of people a company needs a financial policy. This is the hard part. Why? Because the owner is use to wheeling and dealing paying the bills, stretching the cash and taking what they need when they need or want it. That method of handling money "work's" when the business is small. But once you enter the growth path financial policies need to be established. If you do not, then you can easily create financial and credit problems and destroy your credibility as a reliable business.
Some questions that need to be answered are
1. Whose in charge of money?
2. Who pays the bills?
3. Who makes the buying decisions?
4. Who establishes pricing ?
5. Who does the billing?
6. Who collects the money?
7. How often do you bill?
8. Do you extend credit to your customers?
9. What are your credit terms?
10. Who is authorized to signs checks?
11. Do you have more than one checking account?
12. If someone else other than the owner is signing check what is the limit?
The above is just a few of the questions that need to be answered. Growth is exciting..but dangerous! Being in control of your money is essential. If you need to think through your financial policy gives us a call at 412-440-6969. .
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