Fred from WWC pointed to a very interesting and very true item in one of his post on the Ideate-blog.
We all know the statistics on failing businesses: 4 out of 5 (UK figures, SA it seems it’s even worse: 95%) fail within the first 5 years of trading. Mostly due to lack of cash, lack of understanding of ‘the books’, lack of understanding that appointing someone responsible for the number crunching is a very important part of growing (sometimes even the survival of) your business.
In his latest post Fred calls such a person a “Financial Cornerstone”.
I totally agree with this statement and think that every business (small, SME or Multi-National) should have at least one.
Even a one-man(woman)-band. In that regard that a one-man-band should dedicate at least a certain amount of time to ‘number-crunching’, or have a practical system in place to ‘ease’ the work and find a dedicated (part-time) bookkeeper as Financial Cornerstone, in the end it’s worth the ‘investment.