“Are the team focused on areas that create the most value?”
“Which products and customers are the most profitable?”
“Which investment will give the best return?”
These are just a handful of the challenges that financial management addresses, applying proven methodologies that take the guesswork out of these common questions.
Do I need help with financial management?
Financial management is simply the use of financial information to help make business decisions. Small business owners are invariably pushed for time so often decisions are made on the fly, relying on experience and instinct. As a business grows this approach becomes unsustainable because the business owner simply runs out of time. Adopting a framework of financial management helps the business owner control their business through a financial framework rather than being involved in every decision at micro level.
Forecasting, data analysis, and reporting are used to set clear financial boundaries. With these in place the business owner owner is empowered to delegate duties and responsibilities across the team in a controlled fashion. Often a business owner can become the bottleneck to further growth simply because they are running at 110% of their personal capacity all the time. Financial management enables the SME owner to delegate more while maintaining effective control.
Financial Management benefits
Financial management is used to improve the governance of an organisation. This gives the leaders greater confidence that they have effective control over operations. It also provides a valuable set of data that drives more rationale decision making. Simply having the right data is often enough to co-ordinate a team around the best course of action with unanimous agreement.
There are a range of elements that fall under the umbrella of financial management and in practice these are rarely used alone. You can read about these areas in more detail by clicking on the links below: