Businesses MUST AVOID running into Financial Problems
Businesses MUST AVOID running into Financial Problems
Financial Management – Businesses MUST get this right!
It must be quite stressful for business owners not having adequate Financial Management in place to mitigate financial problems.
Businesses’ chance of survival and growth depends on having an agile Financial Management in place.
Financial management is; strategic planning, organising, controlling and managing business finances for maximising profit, optimising money usage, ensuring financial health and business continuity, managing stakeholders appropriately. It is a crucial area of a business.
You MUST AVOID running into Financial Problems by:
- Having a clear business plan from start
- Know day to day costs and monitor, i.e. product costs, level of overheads and contribution to the business
- Meeting creditors expectation
- Understand business cash flow pitfalls and implement appropriate cashflow management
- Allocate expenses appropriately in the accounts
- Ensure customers pays on time
- Identify efficiencies and cost saving opportunities
- Control stock and stock turn, assess for slow moving and obsolete
- Get the right funding for your business
- Gains lenders trust
- Getting assets and liabilities in a right position
- Having Credible Management Report, reflect with accounting rules rather than bank ins and outs
- Having a budget in place to monitor actuals against budgeted outcome, however if the business in a fast-changing industry there is an art of managing costs without a budget!
- Keeping up to date with accounting and tax rules, meeting tax deadlines and eliminate risk of fines
All businesses are different and have different business models regardless of industry they are operating in. Proactive leadership while ensuring business finances don’t fail businesses during the process of growth is very important.
Its time to assess now;
- How agile is your business financial management in today’s fast paced business environment?
- What are your business goals? Where is your business direction going and is it in line with your vision?
- What do you have in place to mitigate running into financial problems?
Skynet Accounting is providing powerful financial management services for businesses. Please get in touch for discovery call.
Telephone: 02393 553991
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