The Financial Operating System® empowers you as a small business owner to financially control your business, instead of the business controlling you. This means more profit, better cash flow, clearer and easier management, and less stress. SmartBooks will help you implement the System.

There are 6 Steps to the Financial Operating System®. SmartBooks will guide you through each step below. At the conclusion of the implementation, it will be part of your ongoing business management process.

Step 1: Identify Your WHY

• Why are you in business?
• What are you trying to accomplish financially with your business?
• What is your business model?

Step 2: Assess Current Finances

• How well capitalized is your business?
• Is revenue growing or shrinking, and at what rate?
• What percent of revenue is dropped to the bottom line as net profit or loss? Is that trending up or down?
• Is the business producing positive cash flow commensurate with reported net profit?

Step 3: Define Metrics and Targets

• Which metrics best indicate achievement of your company’s financial objectives and successful execution of your strategy over the next 1 month to 3 years?
• This will be a mix of leading and lagging indicators.

Step 4: Upgrade Accounting Operations

• Determine required Finance Stack functions and who will perform those functions.
• Define accounting policies and procedures to produce required financial reporting.

Step 5: Manage The Business

• Use a framework to track metrics.
• Operationalize the metrics throughout your business, including accountabilities for your managers and other employees for weekly activity-based metrics that lead to your target financial results.
• Use a monthly forecast to predict future performance.

Step 6: Learn, Iterate, and Improve

• Follow the System’s Operate-Report-Manage loop with an Agile mindset.