Ep. 07: Demystifying Business Finances w/ Mike Farneti, CFO of Daring Haus

Welcome to another enlightening session where we spotlight professionals making waves in the business world, and today, we have a guest who’s breaking boundaries in the area of small business finance. We’re excited to welcome Mike Farneti, the CFO and head of business strategy at Daring Haus, a marketing and business growth agency. As a financial genius, Mike provides essential guidance that has played a considerable role in Daring Haus’s growth and the projects they execute.

The Journey Towards Accounting

Mike emphasizes the need for understanding the intricacies of how your money interacts within your business. He’s a Certified Management Accountant (CMA), giving him a focus on internal accounting, problem-solving, and business growth. This differs from a Certified Public Accountant (CPA) that tends to focus more on regulatory and compliance issues. In other words, Mike’s qualifications make him well-equipped to interpret financial data, aiding business owners in making informed decisions.

Understanding Your Margin

Arguably, one of the most critical pieces of information any business owner should apprehend is their margin – a measure of how much profit you can take away from any given action. Taking control of and understanding your financial metrics propels you ahead of many competitors, according to Mike. You need to demystify finance and make it simple to boost your overall operational success and streamline work patterns for overall efficiency.

Importance of Financial Analyses

Having a clear picture of your financial status informs every other aspect of your business. Mike pointed out that success doesn’t just mean making more money than last year or last month, but also calculating how much time and stress that corresponding profit caused you.

Embracing a Management Mindset

Business owners need to transition from doing things for money to managing a system that does things for money. Building this structure allows you to make the most of your financial knowledge and create a well-oiled machine that increases profitability and reduces stress. According to Mike, understanding the correlation between performing actions and receiving money significantly empowers business owners to take their business to the next level.

Getting a Handle on Your Finances

Finally, Mike encourages small business owners to grasp the basics of their finances. Utilize tools like having a bookkeeper, but also consider the advantages of having a CFO – someone who can help guide you with in-depth analyses. Remember, your finances are more than just numbers; understanding the details can help accelerate your business growth.

Conclusion

Mike Farneti, through his profound insights, has emphasized the importance of unraveling the mystery surrounding business finances. For any business owner looking to gain control of their financial situation and make strategic decisions to grow their business, reaching out to a financial expert like Mike could be a game-changer. Understanding your finances isn’t just about survival but about learning to thrive in the business world.