September 2017: What We're Reading
We’re here to help you make your business spending more strategic, intelligent, and connected. Stay up to date and on track with recent insights from small business experts and fintech thought leaders.
Why You Need to Stop Worrying About Profit and Start Worrying About Cash Flow
Cassandra Campbell, Shopify | @shopify
No matter how great your business model is, how profitable you are, or how many investors you have lined up—you won’t survive if you can't manage your company's cash flow. A good primer on the difference between profits and cash flow.
“Getting good at managing cash flow is one of the best things you can do for your business. Not only that, it's a skill you can carry over into other businesses, as well as your personal finances.”
Most organizations, at some time or another, face the need to cut costs. But how many can say that the experience resulted in a stronger, more strategic business? Here are five crucial mindset shifts that can help you and your organization manage costs in the right way.
“Most companies...make across-the-board cuts that are unconnected to their strategy, and fail to make the cuts sustainable. Most organizations wait to act until they have a problem, at which point they don’t have the time to make the right trade-offs for the long term.”
Polley highlights the stresses of budgeting season. This article focuses on the private equity environment, but it includes good lessons for all about how to better understanding and avoid these common budgeting myths.
“Despite its importance—or perhaps because of it—the budgeting process seems bathed in corporate lores, legends, and myths—some of which have merit, many of which do not. Separating budget fact from fiction is the key to getting the most out of the process.”
Moving Financial Consolidation and Reporting to the Cloud
John O’Rourke, Proformative | @johnnyor58
Learn how to manage your cash flow more strategically and efficiently by moving to cloud-based budgeting applications.
“The financial close, consolidation, and reporting process is an important part of the overall enterprise performance management cycle in organizations. Whether your organization is a public or privately held company, getting accurate and timely information to internal and external stakeholders is important to effective decision-making.”
RocketTrip CEO Dan Ruch shares how using his company’s app successfully incentivizes employees to trim business travel costs.
“Corporate travel policy is a ‘sub optimal structure’ with $1.25 trillion globally every year being spent by companies on flights, hotels, cars and trains, with ‘no incentive by individuals to save money. Employees are spending someone else’s money—the company’s money’ and lack the motivation to ‘sacrifice’ for the good of the company since they’re the ones toughing it out on the road on behalf of the company.”
How Ineffective Hotel Audits are Causing Companies to Overspend
BCD Travel + Skift | @BCDTravel
Companies invest a lot of time and effort into creating a successful hotel program, but without regular rate auditing, they may be leaving money on the table.
“Mid- to large-sized companies that don’t perform standard rate audits are likely to pay more than they should for hotels. For every $5 million a company without an audit spends on hotels, it overspends by $122,500.”
Have a helpful article or publication to share? We’d love to hear from you: hello@CenterID.com.