[...]... 82 91 95 98 10 3 10 5 10 5 11 0 11 7 12 2 12 4 12 7 12 9 12 9 13 5 14 2 14 7 15 7 16 0 16 3 16 3 CONTENTS Maintaining the High-Level Vision for Strategizing Initial Considerations Planning Implementing Systems Up and Running: Maintenance Final Thoughts Chapter 8 FINANCIAL REPORTING Understanding the Need to Report Financial Data Employing Accounting Methodologies to Serve Current and Future Needs Creating Models for. .. and Measurement Issues in Creating Financial Statements Maintaining Good Reporting Final Thoughts Chapter 9 WRITING THE STRATEGY DOCUMENT Purpose of Defining/Documenting the Finance Strategy Preparing to Write the Document Composing the Strategy Document Putting the Document to Use Evaluating Performance Enabling Future Development Final Thoughts xiii 16 7 17 1 17 5 18 3 18 7 18 9 19 1 19 1 19 9 204 207 211 ... 211 214 215 215 219 224 2 31 233 235 237 Appendix FINANCE STRATEGY: DOWNEY INTERIORS 239 Index 253 1 DOING BUSINESS IN TODAY’S ENVIRONMENT KEY TAKEAWAYS ■ ■ ■ ■ ■ ■ ■ ■ ■ Understanding the objectives of this book Understanding common misconceptions regarding the finance function Defining small and emerging businesses Understanding the role data management plays in the enterprise Understanding the core... or (at the least) extend their lives through challenging times WHAT IS THE PERCEPTION OF FINANCE AND ACCOUNTING? Small business owners and executives are compelled to wear many hats in carrying out their duties as leaders of a business organization Often the accounting/ finance hat is the one most avoided The small and emerging company’s survival depends largely on the health of the finance function. .. with the daily struggle by subordinates and customers for time and attention In spite of these demands, one objective always must remain at the fore: turning a profit and turning it quickly For many small and emerging business owners, the formative years of the business are heavily dependent on getting results now Time to develop markets, products, and a recognizable brand is often in short supply The. .. circumstances OBJECTIVE The objective of this book is to cut to the core purpose of the finance function and create a context for laying the groundwork for a sound finance organization Unlike traditional accounting and finance guides, this book does not address the esoteric (and complex) pronouncements issued by the accounting industry for interpreting transactions and events Instead, it provides the conceptual... Operations Strength and Scalability Final Thoughts Chapter 3 WHY STRATEGIZE? Strategizing in All the Right Places Benefits of Strategizing 1 1 2 4 5 6 6 8 9 12 13 15 16 17 17 18 18 21 23 23 28 29 32 35 40 43 45 45 49 xii CONTENTS Initiatives Shaping the Finance Organization Scope of Strategizing When Does Strategizing Begin to Count? Key Dependencies Initiating the Culture of Strategy The Future: Ready... handling issues that affect the finance/ accounting function must be overcome before a tendency to avoid finance issues becomes a culture of neglect Reluctance to address the finance function properly often stems from misconceptions and half-truths—these are dangerous because, left unchecked, they eventually will lead to bad decisions Common misconceptions toward the finance function borne by small and. .. due to the improper balance of operational and financial initiatives There are many reasons for business failures, although it is clear that many are due to the inability of owners and executives to balance administrative and back-office functions like finance with operations By tying the finance function to operations, small and emerging businesses that are inherently at risk can (at best) buoy themselves... decisions, the GOING PUBLIC 11 ability to meet all federally mandated reporting requirements in a timely manner represents a formidable challenge for the finance function in small and emerging businesses Before exposing itself to these rigid reporting requirements, a company considering going public should assess its ability to gather, process, and analyze financial data with the dual objectives of reporting . Michael C. Growth and profitability : optimizing the finance function for small and emerging businesses / Michael C. Donegan. p. cm. ISBN 0-4 71- 212 16-4 (CLOTH : alk. paper) 1. Small business Finance. . alt="" GROWTH AND PROFITABILITY Optimizing the Finance Function for Small and Emerging Businesses To a loving family (Mom, Dad, Pam, Lorraine, and Christine) and a God that is love GROWTH AND PROFITABILITY Optimizing. misconceptions regarding the finance function. ■ Defining small and emerging businesses. ■ Understanding the role data management plays in the enterprise. ■ Understanding the core motivation for staying in