FAQs

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FAQ's

Why do I need a budget?

Budgets are a great tool to help you to make more money. The common complaint we hear is that a budget is outdated before the ink is dry. We agree. That’s why we believe in dynamic budgeting. To us, a budget is like a GPS system—it’ll help you adjust your course when you go off track. We believe in frequent updates to the budget to reflect what is going on with your business. Aside from being a great exercise in understanding where you spend your money, it’ll also help you think through your strategy and force you to put numbers on paper to show how you expect to get there.

I already have an accountant, why would I need a CFO and Controller?

Having a good CPA for tax planning and preparing your annual return is absolutely necessary. You are in good hands if your accountant is providing thorough monthly reviews, helping you find ways to make more money, establishing controls to protect your company assets and providing advice on ways to cut costs. If you aren’t getting this type of help then we strongly recommend you call us.

What do I need to do to protect my business' money, equipment, and inventory from theft or fraud?

We find many business owners wear many hats, and their employees do too. Sometimes, though, it is important to make sure someone doesn’t have complete management and recordkeeping responsibilities for an asset like your bank account, equipment or inventory. Having the proper controls in place is the best way to reduce the risk of errors, mistakes or fraud and it starts with hiring good people. There are simple things you can do to ensure you are not at risk, such as separating the check writing and bank account reconciliation duties, and requiring employee expenses reports be documented and approved by managers before a payment is made. To protect your investment in inventory it is important to do periodic inventory counts and compare it against your electronic inventory balances can highlight any differences.

What is the biggest 'missed opportunity' that businesses have?

In our opinion– it’s measuring customer profitability. Especially when it comes to cutting costs or improving profits, we find that businesses turn to across-the-board cuts. Many don’t realize that studies have shown that businesses lose money on 80% of their customers. We help companies identify those customers and develop strategies to deal with them. By understanding your customer profitability, you will be able to make better pricing decisions, focus on growing the ones that are making the most money and segment your customer base for more targeted marketing.

Contact Us

90 East Halsey Road
Suite 327
Parsippany, NJ 07054

Tel: (973) 659-1430
Fax: (973) 659-1490
info@profitpointconsulting.com

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