Let’s be honest…
It does not make a lot of sense to try to build a business without a real plan of learning how to sustain it. I am going to go out on a limb here and say that most people that go into business want to succeed. But what truly makes a business successful? That’s the big question. In my humble, yet experienced and professional opinion, there are two main pillars of running a successful business:
- Operations – The day to day things necessary to make the business run.
- Accounting & Finance – The strategy, analysis, recording, and tracking of financial transactions.
If you look at the leadership of successful companies, you can see which roles are key. In almost every successful company from scaling companies to huge conglomerates, there are 3 key roles; CEO, COO, and CFO. The Chief Executive Officer (CEO) is the big picture thinker and primarily concentrates on long term strategic goals. The Chief Operating Officer (COO) is the leader of managing the day-to-day operations of the business. The Chief Financial Officer (CFO) is in charge of the financial management of the company’s resources.
Let’s talk a little bit about what this looks like as it relates to the pillars. As mentioned earlier, the COO focuses on the daily operations of the business. Operations can include sales & marketing, customer service, human resources, etc. Meanwhile the CFO is all about the Benjamin’s baby – accounting and finance. This pillar concentrates on the tracking, planning, and management of money. This is where we begin to strategically understand how to best manage our money.
Do you see how all of that ties together to get you to a desired end goal (aka success)? Not quite? Ok, let me give you a solid example –
Your business is growing and you think it could be time to hire some additional help. From an operations perspective, this means recruiting, interviewing and onboarding. But wait! Do you have the funds to hire someone new? If so, what can you afford to pay them without going out of business? Does it make more financial sense to redelegate duties and pay a current staff member more? Those are the kind of questions that are asked under the accounting and finance umbrella.
It is important to remember that you not only need these functions to run a successful business; but you need them to work together in a partnership-type fashion (think Ebony & Ivory or peanut butter & jelly… you just can’t have one without the other). I now challenge you to look within your business and determine if these pillars really exist. If so, are they working co-dependently or independently? If nonexistent or if they are working independently, it is time for you, as the leader, to make the change. The success of your company may be determined by many factors, but ultimately it does start with you.
Right Choice Accounting Solutions is proudly a black owned, CPA led outsourced accounting and tax firm. Right Choice offers a one-stop shop accounting and tax solution that covers high level strategy, accounting insights & analysis, financial statement preparation, tax planning and preparation, basic bookkeeping, and much more. Schedule your FREE intro call TODAY to learn more about what makes us the Right Choice for your accounting and tax needs.
Keywords: Accounting, Finance, Business, Chief Executive Officer, CEO, Chief Operating Officer, COO, Chief Financial Officer, CFO, Marketing, Customer Service, Human Resources, Operations, Partnership, Money