Once your emerging growth company obtains cash, either via investment or through revenue generation or both, it is supremely important to monitor and manage that money, so you maintain positive cash flow. You need to have your finger on the pulse of your business to do the right things and avoid doing the wrong things.
In other words, crossed-fingers guesstimates are not the best way to run your business.
“It is important to remember when starting and growing a new company that cash is more important than your mother.”
Al Shugart, founder of Seagate Technology
Cash is King – The Money Story, a white paper by NetSuite, reveals seven barriers that can hurt your cash flow. These are real-world scenarios that companies must address to survive in today’s rapidly changing environment. The white paper tells how CXO-level executives must see and show how their company performs vis-à-vis from a cashflow perspective.
- The Hairball
- Waiting for Real-Time Information
- Billing and Rev Rec: Necessary Bedfellows
- Upgrades Equal Downgrades
- Where’s the Money?
- Uncoupled Product and Service
- Misalignment of Strategy and Execution
Discover obstacles, including everything from The Hairball, in which many disparate, disconnected systems actually work against back-office automation vs. helping its efficiency, to Misalignment of Strategy and Execution, precisely as the name states, where the company goals aren’t being acted upon logically. Other items include lack of real-time information, billing and rev rec issues – and the penalties that come with non-compliance. Let’s face it; regulations like ASC 605 and 606 cannot be ignored.
The real red flag is that these obstacles grow more insidious as a company scales; that is, they can grow exponentially worse over time, so the problems get more significant as the company and its processes and systems get bigger.
Of course, all is not hopeless. There is a cure for all of the seven woes. And this cure starts with automating your back-office systems with an integrated, cloud-based solution like NetSuite.
NetSuite offers a 360 degree view of your business, extending globally across time zones, regions, tax laws, regulatory compliance, and more. CFOs quickly acquire real-time data with NetSuite, and then eloquently communicate the metrics in an easily digestible story that CEOs, Boards, investors, and customers alike can understand.
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Looking for NetSuite Expertise?
For more details on how NetSuite can help your company cash flow, get in touch with Kranz! Our team of NetSuite experts can help you from strategy to execution, working with you to develop insights to grow your business.