4. Financial reporting the fourth and last major obstacle
Financial reporting occurs in every business stage. This obstacle causes a great deal of problems that can sometimes result in adverse consequences to companies. Financial reporting allows companies to better assess their current and future state of operations by providing the information necessary to make vital and necessary changes.
For example, lack of financial reporting can result in-among many uncollected receivables, tax issues, defaulting on payments, allocation of capital to un-profitable parts of the business, etc Many profitable companies operate without the proper financial reporting protocols in place; however, when all is said and done inefficient financial reporting will cause a company to increase their burn rate without even realizing it.
Takeaway: without proper financial reporting your company will be susceptible to a multitude of problems that could have been averted if the proper reporting protocols were set in place.
About the author
Alexander J. Hart of Cuban American decent is principal and founder of Hart Vida Raffo. With over 25 years of experience, Alex specializes in the areas of tax strategy and planning, business process improvement, and capital consulting. Whether advising on capital and financing strategy or consulting for privately-held professional services firms, Alex has the expertise and practical know-how to help any company optimize their business processes and make tactical financial decisions. He began his career at IBM in sales operations and accounting. He was a Controller for the N.Y. Post, has been a CFO for a medical device company, and has written a tax column called “Ask the Tax Guys” for Micro-Cap Review. Alex is a professional member of A.L.T.A. (Affiliated Lawyers of the Americas), a member of the National Association of Tax Preparers, and is a contributing author and mentor at Latin Business Today. Alex graduated from St. John’s University with a B.A. in Spanish and his M.B.A. in Finance. He obtained his accounting degree from Pace University.Website