10 Things I know about... ... using your financial function as an advantage
10) Articulate your goals.
Establish clear, quantifiable short- and long-term goals so you know were you're headed. Live by the maxim: “Without a plan, all activity looks like progress.”
9) Direct your reporting.
Identify the information required for your decisions en route to achieving goals, including comparisons to industry benchmarks.
8) Align & equip your team.
Even a finance team of one should have the capability to consistently produce useful financial metrics each month. Tired of the headaches associated with attracting, managing and retaining a finance team? Consider outsourcing.
7) Select the right tools.
There are many affordable software applications available to manage your general ledger. The right mix of tools helps make the information you need secure, accessible, consumable and shareable.
6) Ensure accuracy.
Well placed controls help ensure your information is accurate and secure, no one is exploiting weaknesses in your system, and you're operating within the law.
5) Demand consistency.
Establish and document standard procedures to facilitate consistent delivery of accurate information.
4) Produce timely, consumable info.
Generate financial reports monthly to ensure opportunities and issues are caught early. Remember presentation matters. No business owner has time to read cryptic financial statements. Useful insights should leap from the page.
3) Know your cash position.
Cash is still king. You won't have your finger on the pulse of your business until you understand how and when cash flows in and out.
2) Review, take action.
Don't simply file the monthly reporting package. Use data to measure progress toward your goals.
1) Evolve with your business.
The opportunities and challenges a business owner faces change. It follows the data required to inform your decisions does as well.
Dave Robinson is founder of Gardner financial firm Driven Insights. He can be reached at dave@driveninsights.com.
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