Finance touches so many areas that affect companies- capital, reporting, people and technology.  Here's my top 25 list of ways that companies can fall short in finance and keep company results from being as strong as they could.   How well does your company stack up?

Reporting

1.     Financials are not correct with inadvertent yet material errors.

2.     Focus on income statement rather than the balance sheet.

3.     Numbers come in too late, well into the next month.

4.     Standard or huge reporting packages that fail to distill essence of results.

5.     Limited reporting on revenues/margins; too much detail in administrative costs.

6.     Relying on limited outside accounting without in-depth review.

7.     No flash reporting to show preliminary results on first day or two after month end.

Cash Flow

8.     Not really grasping cash flow (not cash balance).

9.     Letting working capital (receivables, payables, inventory) get out of control.

10.  Taxes not planned ahead and savings missed; tax money not set aside regularly.

Results

11.  Don't understand margins and where money is really made in business and industry.

12.  Dashboard reporting to show interim results spotty or missing.

13.  Caught up in day to day; no advisors to hold president accountable for results.

14.  Not being managed for owner's compensation.

Capital

15.  Banking relationship/structure that doesn't fit or inadequate use of banker.

16.  Unrealistic expectations- too little raised, expect to last too long, too high valuation.

17.  Not looking ahead at future equity rounds and investor returns needed

Technology

18.  Under or overinvesting in reporting technology.

19.  Technology driven by finance rather than operations or customer service.

Planning

20.  Budgets or business plan do not exist or are not bought into by staff.

21.  Budgets and cash flow plans not consistent and integrated with financials.

Financial Personnel

22.  Financial staff lacking training, guidance and tools.

23.  Not knowing how to hire key finance person and relying on gut feel.

24.  Finance department not keeping engaged with rest of company.

Merger & Acquisition

25.  Not planning for sale far enough in advance and getting right team involved.