fin-house

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Calling all finance team members: What gets your blood boiling? 🤯

Having ‘just enough’ knowledge can be dangerous 24 Founder Finance Fails to Avoid 👇 Many founders take critical decisions with half-baked knowledge. From thinking you’ve got enough cash to focusing on vanity metrics. Some pretty disastrous decisions take place in many startups. Why? Knowing just enough can be more dangerous than knowing nothing at all. Here are 24 reasons why having ‘just enough’ knowledge is a serious risk: 0️⃣1️⃣ Scaling Too Quickly 0️⃣2️⃣ Misreading Profit Margins 0️⃣3️⃣ Focusing Only on Revenue 0️⃣4️⃣ Confusing Cash Flow with Profit 0️⃣5️⃣ Ignoring Burn Rate 0️⃣6️⃣ Underestimating Fixed Costs 0️⃣7️⃣ Obsessing Over Vanity Metrics 0️⃣8️⃣ Over-Optimising for Short-Term Gains 0️⃣9️⃣ Misinterpreting Break-Even Point 1️⃣0️⃣ Not Accounting for Depreciation 1️⃣1️⃣ Neglecting Seasonality 1️⃣2️⃣ Underestimating Tax Liabilities 1️⃣3️⃣ Ignoring Interest Payments 1️⃣4️⃣ Overlooking Currency Risk 1️⃣5️⃣ Forgetting About Accounts Receivable 1️⃣6️⃣ Not Understanding Financing Costs 1️⃣7️⃣ Neglecting Employee-Related Costs 1️⃣8️⃣ Over-Reliance on One Customer 1️⃣9️⃣ Misjudging Product Lifecycle Costs 2️⃣0️⃣ Underestimating Capital Expenditures 2️⃣1️⃣ Not Stress Testing the Business 2️⃣2️⃣ Miscalculating Customer Acquisition Costs 2️⃣3️⃣ Ignoring Deferred Revenue 2️⃣4️⃣ Not Seeking Professional Help How to avoid them? Recognise what you know and what you don’t. And for most founders who don’t know what they don’t know - talk to a pro. Have I missed any? Which is the most dangerous? ___ ♻️ Repost this if you’ve seen these finance fails before 🔔 Follow James Segal for more posts like this

Agree? Disagree?

Is your accounting firm helping you with any of these? If they are, they probably shouldn’t be. Accounting firms are experts in tax and year-end reporting. But as businesses grow they often get asked to help with tasks better suited to an in-house team. Those tasks need an insider's view. They need to be done by someone who knows the business incredibly well. Someone who works closely with all the key stakeholders. Someone who has industry experience. Accounting firms are just too far removed from the business to add meaningful value. It’s not their fault, it’s just the way the model works. Whilst technically they can do some of the tasks below they just aren’t close enough to the business to do them justice. Here’s 5 things they SHOULD NOT be doing. 1️⃣ Cash Flow Forecasting 2️⃣ Financial Modelling 3️⃣ Management Reporting 4️⃣ Commercial Advice 5️⃣ Strategic Planning These tasks should be delivered by your in-house team or by fractional embedded support. 🚨Warning 🚨 If your traditional accounting firm offers CFO services - run away fast! Think I’m wrong, I’d love to hear your thoughts? Let me know below ⬇ ♻️ Share this if you think it might help! ✴ And follow James for tips on structuring your finance team

Any CFOs out there that need to bring out their inner JK Rowling?

8 dangerous finance myths that could sink your startup Don’t be a myth believer 🫣 There are so many misconceptions when it comes to startup finance. It’s not surprising as most founders come don’t armed with a finance background So how do you know the difference between right and wrong? The following myths are statements that get said in thousands of startups every day. It's scary stuff! If you seriously believe some of these then you’re in for one wild ride. No doubt! 🦄 Bank balance = Cash flow ✅Your bank balance doesn’t account for upcoming expenses, delayed revenue, or cash flow timing. 🦄All debt is bad ✅Smart debt can fuel growth if used strategically, such as for expansion or equipment. 🦄Sales today = Cash today ✅If you're selling to big corporates, payment can take months to arrive due to long invoicing cycles, credit terms, and approval processes. 🦄Only big companies need a CFO ✅Small companies can greatly benefit from CFO-level insight, even on a part-time or fractional basis, to guide growth and financial health. 🦄Profit means cash flow ✅Profit doesn’t guarantee liquidity. Cash flow mismanagement can sink a profitable business. 🦄Bookkeeping is enough ✅Bookkeeping records past transactions, but financial forecasting and strategy require higher-level financial management. 🦄Taxes only matter at year end ✅Regular tax planning is crucial for cash flow management, avoiding penalties, and making smart deductions. 🦄Growth solves all problems ✅Rapid growth without proper financial planning can lead to cash flow shortages and operational strain. Disagree with any of these? Have any additional ones? Would love to hear them in the comments ⬇ ♻️ Share this someone that needs to know the truth! ✴ And follow James Segal for tips on finance teams in startups

Is your CFO spending time on the right tasks? Or are they getting caught up in work they should be delegating? CFOs often end up doing tasks that should be left to the finance team. This can lead to wasted time and missed opportunities for strategic leadership. Even if your CFO has the bandwidth, their focus should be on driving the business forward. Here are 10 things your CFO shouldn’t be doing. 1️⃣ Getting bogged down in the detail 2️⃣ Paying suppliers 3️⃣ Reconciling bank statements 4️⃣ Submitting your VAT returns 5️⃣ Preparing Payroll 6️⃣ Chasing receivables 7️⃣ Bookkeeping 8️⃣ Posting month end journals 9️⃣ Reconciling your balance sheet 1️⃣0️⃣ Supplier management If they are doing them, it's likely they're either not happy about it or not a proper CFO. Do you agree? Let me know below ⬇ ♻️ Share this if you think it might help! ✴ And follow James for tips on structuring your finance team

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