Would Your Company Benefit from a Virtual CFO? Find Out!

Posted on July 11, 2011 by Karen

Have you ever wished you had a controller on staff that could review and analyze your financial data for you? Someone who could oversee your accounting processes to make sure that everything is setup properly and kept running efficiently? Or maybe there are certain sales reports you would like generated on a regular basis to keep you abreast of your company’s financial position.

Unfortunately, finding the right person to fill that position can be a time consuming process. Providing the space and additional overhead to cover the costs of the position, may seem hard to justify as well. You may feel like you could benefit from having such a person on staff, but you aren’t quite at the place where you are ready to make the commitment to another staff position. HMACA  has seen many companies in this position. That is exactly why we created our ‘Virtual CFO Service’.

First, what is a ‘Virtual CFO’? A virtual CFO is a system in which our CA firm would provide you with all the services you would expect to get from hiring an individual to fill a CFO position in your company. But instead of having one individual sitting in an office at your location, the staff at HMA provides those same services.

We put together the financial reports that will keep you up to date on what is going on in your business. We oversee your accounting processes to make sure that they are operating smoothly and efficiently.

If this sounds like a solution you might be interested in, we would be happy to discuss how our Virtual CFO services could make a positive impact on your company.

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Why Your Billing Process is so Integral

Posted on June 27, 2011 by Karen

In today’s economic climate, maintaining full control of your business’s finances is crucial. Credit is not as easy to come by and the competition is stiff. Your billing process is an essential part of the financial control.

How you handle your billing process determines how long it takes you to turn your sales into cash in the bank. The slower you on collecting funds from your customers, the slower you will be in paying your own bills. It can become a vicious cycle that can easily spiral out of control.

An easy way to understand how your uncollected receivables cost you money, is to think of in the terms of borrowing money to your customers. The longer it takes you to collect on your receivables, the more credit it requires you to use. Having $100,000.00 receivable on the books for 30 days is the same as taking out a loan for $100,000 and handing the money to your customer interest free. Meanwhile you have to pay the interest on the $100,000 you borrowed, plus you can’t use that $100,000 to pay for any of your costs, so you may end up with additional finance charges for those 30 days.

Getting your bills out faster and collected faster can save you money and help you establish good credit with your own creditors. You’re in business to make a profit. Allowing your receivable collections to get out of hand can cost you profit and the ability to get the credit you need to keep your business going.

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CA Services- The Full Gamut

Posted on June 13, 2011 by Karen

When considering a Chartered Accountant firm for your business, there some basic services you should expect from most any firm.

Standard services

  • Tax services – The ability to prepare and file tax returns for your business is one of the most common services provided by a CA firm. Any firm you consider should be able to provide these services and provide you professional tax advice.
  • Payroll services – Most CA firms will also offer business payroll services where they will handle all your payroll needs, including reporting.
  • Business startup – CA firms are often consulted for advice on how to setup the accounting for a new business.
  • Reviews and audits – Performing reviews and audits on a business’s accounts is another standard service offered by most CA firms.
  • Compilation of Reports – Any reputable CA firm should be able to prepare your annual and/or quarterly financial reports for your business, based off the accounting information you provide.

Additional Services

  • Beyond those five basic services, a full service CA firm should be able to offer the following services.
  • Training services: Training and advice on accounting basics should be available ,as well as computer software training.
  • Accounting and computer software development and controls. Your CA firm should be able to assist you developing an accounting system that fully meets the needs of your particular business and that has proper controls in place to protect against error and misuse.
  • Planning services: A full service CA firm should also be able to assist you with budget planning, strategic business planning for the future and the creation of the proper financial structure for your business.

HMA Chartered Accountants Unique Services

In addition to providing our clients with ALL the services listed above, HMA also provides to very unique services.

  • Complimentary Nineteen Point Review – Our team of professionals offers a nineteen point review of your business’s accounting systems. We will assess the strengths and weaknesses of what you already have in place and provide advice on areas for improvement and how those changes could benefit your company.
  • Virtual Controller Service – This unique service provides companies with the benefits of a full time, on site controller or CFO for a fraction of the cost. You get all the benefits without having to go through the hiring process or the addition of office space.
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Business Credit Lines- How Much is Enough?

Posted on June 7, 2011 by Karen

Obviously, the answer to this question, will vary from business to business when it comes to the dollar amount, but overall answer remains the same…as much as your bank will give you. If your bank says it will give you ‘up to $200,000.00′ for a line of credit, apply for the $200,000.00. Remember, it’s a line of credit, not a loan. You’ll only pay interest on it, if and when, you use it.

Why do financial advisors encourage businesses to request high lines of credit, even when the business doesn’t seem to be in need of it? The reason is simple, the times you do need to use a line of credit are times where your cash flow is down, your receivables and payables are high. Trying to get a line of credit at the point when you most need it, can be difficult. Banks are much more likely to write a letter of credit for a business that doesn’t appear to need one, than it is for one that seems to be struggling. You can’t predict what the future will hold. So, when applying for a line of credit, reach for the stars, get as much as the bank will give you. If that slow period comes where you need the money, you’ll be glad that it is already in place.

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Why Your Billing Process is so Integral

Posted on May 16, 2011 by Administrator

In today’s economic climate, maintaining full control of your business’s finances is crucial. Credit is not as easy to come by and the competition is stiff. Your billing process is an essential part of the financial control.

How you handle your billing process determines how long it takes you to turn your sales into cash in the bank. The slower you on collecting funds from your customers, the slower you will be in paying your own bills. It can become a vicious cycle that can easily spiral out of control.

An easy way to understand how your uncollected receivables cost you money, is to think of in the terms of borrowing money to your customers. The longer it takes you to collect on your receivables, the more credit it requires you to use. Having $100,000.00 receivable on the books for 30 days is the same as taking out a loan for $100,000 and handing the money to your customer interest free. Meanwhile you have to pay the interest on the $100,000 you borrowed, plus you can’t use that $100,000 to pay for any of your costs, so you may end up with additional finance charges for those 30 days.

Getting your bills out faster and collected faster can save you money and help you establish good credit with your own creditors. You’re in business to make a profit. Allowing your receivable collections to get out of hand can cost you profit and the ability to get the credit you need to keep your business going.

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