Featured on Forbes’ website, the article “Four Tips For Organizing And Managing Your Company’s Finances,” written by contributor Chris Myers, discusses the importance of staying organized when it comes to a business’ finances, especially for newly launched ventures.
“It’s a sad fact that over 90 percent of small business owners don’t have accurate, dependable and up-to-date financials,” writes Myers in the article. “There used to be a lot of excuses for this, [such as]: Organizing your numbers was time consuming, complex and expensive.”
In the article, Myers offers four tips to help business owners get organized and manage their ventures’ finances more effectively:
- Take advantage of the latest technology. Businesses now have more than just a few choices when it comes to managing finances. Instead of hiring an accountant or using heavy-duty software, a number of “third path” options are now available today that rely on technology that is easy to use. Myers offers his company as an example in the article. “BodeTree simplified the entire process by connecting directly to bank and credit card accounts — providing real-time insights into business financials, like cash flow and valuation,” shares Myers in the article. “There are other solutions as well, such as InDinero and Bench, which add a human element to the process by connecting you with a virtual personal bookkeeper.”
- Set aside time to review the numbers each week. Many owners only think about their finances when it is tax season. However, important money-based decisions occur organically and not just during tax season. Set aside time each week to review finances, and make financial management part of your routine.
- Utilize the “FOGS” framework when evaluating decisions. The FOGS framework can help businesses make data-driven decisions. This outline stands for: finance, operations, goals and strategy. “When making a decision, think about the financial impact, how it will affect your operations, whether it furthers your goals and if it aligns to your strategy,” explains Myers in the article. “This framework is at the core of every successful business.”
- Don’t lose sight of the big picture. For any successful business, the goal is to maximize value. “While the definition of value can differ from person to person, more often than not it’s the financial value of the business that entrepreneurs really care about,” asserts Myers in the article. “It’s the culmination of everything that is going on in a business: where it has been in the past, where it stands today and where it’s going in the future.” Staying focused on the big picture can help businesses stay motived and engaged when it comes to managing finances.
You can read the entire article on financial management here.