Author Archive

May 14 2009

Go Green, Collect the Green

Posted by Dan Cote in Hidden Cost Savings, tags: ,

The new buzz these days is to “go green”.  We at CFO2Go agree that “green is good”.  One way to move your company to the green is to eliminate month end statements if you issue invoices for good/services.  If an account is delinquent, pick up the phone instead of sending the statement.  Any good accountant is not going to pay from the statement so by calling the customer, you:

  1. Let the customer know you are watching the account
  2. Can verify that the customer has received the invoices
  3. Determine if there are issues with the goods/services provided, or, the ability for the customer to pay thereby giving you the chance to establish payment terms
  4. Saves paper, stamps, office admin time, etc.

By “going green“, you can “collect the green” and keep your business healthy.

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Apr 20 2009

Hidden Savings with Vendors

Posted by Dan Cote in CFO Tips, Hidden Cost Savings, tags: , , ,

I have been requesting that one of my clients “shop” his medical insurance with other carriers to see if there was an opportunity to save some premiums.  Each year, he “didn’t have time” and his agent was “taking care of him”.

When the policy was coming up for renewal late last year, I again suggested he shop.  This time he did and discovered he would save over $28,000 in premiums this year and provide better coverage for his employees.

Moral of the story: Keep your agent honest by checking out other options elsewhere. Don’t let them become lazy on your behalf. Also, take advantage of any programs offered through associations that you may belong to. These organizations can sometimes provide better coverage at lower rates due to the age group of the census.

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Apr 03 2009

Proper cash management…gone wrong

Posted by Dan Cote in Cash Management, tags: , , ,

At CFO2Go, we try to impress upon our clients that proper cash management and controls are imperative to company operations.  One of the controls we emphasize is who is authorized to sign checks and that it should rest with senior management.

On a recent visit to a new client, I discovered that all checks issued by the company required two signatures from senior management before being sent.  I was elated by the fact that a company was actually practicing good cash management and controlling its cash disbursements!

This elation was short lived.

The next thing I learned is that a rubber stamp was utilized to sign the dual signatures on all checks.  This was not a huge issue to me until I questioned where the stamp was kept and who had access to it.  I was crushed to find out that the stamp was stored in the Accounting Managers top desk drawer, and the stamp contained both required signatures on it.  When I inquired where the company had obtained the stamp, the answer was, “well, from the bank!“.

So much for practicing proper cash management.

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