Struggling to manage the finances for your organization or business? CFO Peter Nyberg offers insights.
Managing finances for an organization can be immensely difficult. Peter Nyberg knows as he’s currently the Chief Financial Officer (CFO) for the Camino Community Center, which provides healthcare services while also running a thrift store and food pantry. Now, Mr. Nyberg is going to share some tips for making finances easier to handle.
“First, you need to take financial management very seriously,” Peter Nyberg suggests. “You can’t do it haphazardly as it’ll lead to more problems and headaches later on. In both business and the nonprofit world, it’s essential to develop good processes and best practices.”
One mistake new entrepreneurs and founders make is not establishing best practices for managing finances from the get-go. Instead, they plow ahead, assuming that later on they can simply circle back and do the finances. Unfortunately, this can lead to a lot of issues.
“Finances are difficult to manage,” Peter Nyberg points out. “Your finances are practically alive. The numbers, cash flows, and all the rest flow and change, and you need to track all of that. If you’re not careful, your organization could end up starved for cash and could collapse.”
If you kick the can down the road and don’t get your finances in order quickly, catching up later on could prove to be all but impossible. Problems will multiply. Trying to sort out your books can be time-consuming and mistakes are easy to make, especially if you’re trying to catch up.
However, by dedicating the time and resources necessary to manage your finances from the get-go, you can avoid backlogged work. Further, if you need to apply for a loan, you’ll typically have to furnish your financial records. Having them ready from the get-go may open up finance opportunities.
Peter Nyberg Says These Steps Will Make It Easier To Manage Your Finances
So how can you make your finances easier to manage? First, Mr. Nyberg suggests that you separate personal accounts from business accounts. For example, you shouldn’t use your personal credit card to fill up gas in your work truck. Instead, you should use a company credit card. This way, you can easily distinguish personal spending from business spending.
Next, you should implement accounting software. While you might be tempted to use simple spreadsheets, fully-featured accounting software is often a better choice.
“There are a ton of great accounting software platforms,” Peter Nyberg says. “To be quite frank, these software programs have made my job quite a bit easier. My team and I can focus more on the big picture and less on compiling the small details because the software takes care of a lot of it.”
These days, accounting software may include invoicing solutions. You may also be able to integrate external invoicing solutions, payment platforms, and the like. Also, make sure you pay attention to any mobile apps available, you may be able to track receipts on the go or the miles you’re putting on a vehicle while you’re working.