“What’s your five-year plan?” How you answer can be the difference between being funded or being cash-strapped, which in turn could be the difference between growing into a successful, Fortune 1000 company or surviving as a relatively unknown company. It’s no secret that prospective investors are eager to see how companies plan to grow over the course of the next five years. How companies spend and manage their money, among other things, can be crucial to helping investors decide what company to fund.
Thanks to a new company called 60mo (get it? That’s the equivalent of five years!), organizations can manage their financial life online, while leveraging historical data to forecast the future. We spoke with Ed Buchholz, CEO & Lead Designer at 60mo about how small companies can use its financial dashboard to get ahead.
Manage Your Money Like You Mean It
Obviously there are many reasons why companies need to manage their business expenses effectively. First, it’s just good business sense. But, you’re an idea person, not an accountant. With a staff of developers, designers and marketers, you decided to forgo the comptroller, human resources director and CFO, because you’re a simple operation.
With Quickbooks and other money-managing software tools, you can know how much money you have, but do you really know how much you would have if you decided to hire an administrative assistant or second developer? Probably not. With 60mo, you can create “what if" scenarios that let you see what your cash flow would look like if you got another copier, or offered a Groupon. As well, you can plan your budgets for future employees or track expenses made by current employees.
Likened to the Mint.com for businesses, 60mo makes it easy to sync with multiple bank accounts and credit cards, as well as with QuickBooks, QuickBooks Online and Xero. At present, there are two versions available: One for simply managing your accounts, and another that lets you manage and forecast. Each provides a financial dashboard that shows you the metrics you need to know and lets the user drill down to see everything from income v. expenses, profit/loss margins and income breakdown. Both provide basic import, export and reporting functionality.
But 60mo doesn't just care about your individual financials -- it wants to show you the big picture as well. As a result, it provides a news feed with information deemed relevant for your industry and about your competitors.
Invest in Financial Transparency
The Enrons and Lehman Brothers of the world have taught us that transparency is key when it comes to a company’s financials. What better way to show prospective investors that you mean business than by giving them access? Users can share viewing access (looking, no touching) with others so they can see for themselves what’s going on behind the scenes.
Financial Planning, Web Engagement: A Reciprocal Relationship
If you read this far, you’re probably wondering what financial planning has to do with web engagement. One of the most useful things about 60mo is that it lets users create their own metrics so they can measure the correlation between, for example, total page views and revenue. You can begin to see the real return on investment for every click, which may tell you more about how users are engaging with your company -- which is often the true indicator of where you’ll be in five years.