Your Business Financial Management Checklist

Day to day Business Financial Management doesn't need to be a detailed, complex function of your business. Here are easy to use key tools successful businesses use. You might know these reports and tools, but do you really use them?

Understand Your KPI's

Key Performance Indicators (KPI's) are the "at a glance" numbers that give you a very quick sense of where your business is at today. What makes your business tick? Sales Value for the Week to date, Billable Hours for the week to date, Gross Margin on Sales Week to Date? Decide on your quick and easy to use KPI's and monitor them at the start of everyday.

Accounts Receivable

With cashflow still the key to the day to day running of every business your accounts receivable reporting is something you should be looking at every week. From this you will know who owes you and who you need to chase.

Accounts Payable

One of the key components of your cashflow forecast is who you owe money to. Make sure you know who you have to pay now and who you can put off for another week. Crucial suppliers you need to materials from to produce your products or services are the ones to keep up to date. Larger corporates such as the electricity or telephone company can be persuaded to wait for "another week" if required.

Cashflow Forecast

This is the key tool for day to day financial management. Using the above reports where are you now and how does the next week, month or quarter look? Are you going to have a bottleneck because of that extra weeks payroll before the end fo the month?  It is better to see it coming now than to get to the end of the month and not have money for payroll.

Avegna have a free daily cashflow forecast template we are happy to share with you, please email us at info@avegna.com.au for your free copy.

P&L and Balance Sheet

Boring it might be, but successful business owners live, eat, drink and breath the financial performance of their business. Just ask any top CEO about the financial ratios of their business and they will be able to rattle them all off. Can you?

It is not as hard or complex as it sounds, it can be as simple as a couple of hours per month to review and understand these numbers and what it means for your business.

Avegna assist business owners with real world practical business financial management such as the reports mentioned above. For any further information on the issues covered in this article please contact us. We offer a free, no obligation initial consultation.
 

Scott Lyall
CEO of Avegna

www.avegna.com.au