Too many small business owners start losing track of the true picture of performance once the size and complexity of the business increases. Are you making one of these 8 critical mistakes?

1. The 8 BIGGEST
MISTAKES made by
small business owners
– areYOU making any
RIGHT NOW?
The 8 BIGGEST
MISTAKES made by
small business owners

2. Incorrect profit
figures
If your profits vary significantly from
one month to the next and you are
not clear why, you have little clarity
on how you are actually performing
MISTAKE #

3. Poorly structured
general ledgers
If your accounts are not structured
correctly you will have little chance
of preparing meaningful reports
MISTAKE #

4. Poorly constructed
financial reports
Reports need to reflect the
operational characteristics of the
business – if they do not, you will
have difficulty understanding the
drivers of performance
MISTAKE #

5. Undefined
benchmarks
You must have clear targets to
measure your performance against –
this can be previous year
performance or properly-
constructed forecasts
MISTAKE #

6. Not knowing the
profitability of the
different parts of the
business
If you have multiple business lines,
sell into multiple markets, and/or sell
through different channels, you
must know how each individual
segment is performing
MISTAKE #

7. Not understanding cost
behaviours
“If you can’t measure it, you can’t
manage it” – it’s a well-known saying
but few business owners know what
to measure and how
MISTAKE #

8. Running out of cash
Managing working capital is very
important but it will NOT save a
business that is making insufficient
profit
MISTAKE #

9. Making commitments
that cannot be
supported
Many businesses have good growth
opportunities but managing growth
can be highly risky without a clear
financial and operating plan
MISTAKE #

10. The CFO is key to having the financial
controls, systems, policies, and
resources needed to ensure
compliance, profitability, and growth.
Time-share a dedicated CFO with
ceefo from only $550 per month.

11. P: 1300 854 524
W: www.ceefo.com.au/
E: info@ceefo.com.au