When people think of financial management, they are thinking of managing their own bank accounts, paying bills, budgeting, saving for a rainy day, and monitoring their spending. However the process of financial management for businesses is much more than that. It involves analyzing and controlling every dollar that enters and leaves a business. It also involves making strategic choices to make the company as financially secure and profitable as is possible.
The first thing that every business needs to do is set objectives for themselves, including specific targets for things like maximization of profits and business growth. Then, they have to establish how they will reach those goals. This means creating financial reports and establishing accounting systems, and determining the best method to increase their earnings. Even small improvements to the management of finances in a business can have a big impact on its short-term as well as long-term success.
Finance teams are accountable for all the money that comes in and out of a company. They are responsible for establishing and the implementation of all banking procedures within the company. They supervise the issuance and administration of bonds and shares as well as debts. They also make investment decisions. They must be competent to balance the books and ensure that there is always enough cash in the bank for all operating expenses, while also ensuring that any new investments will provide an acceptable return.
If your business is growing rapidly and you’re not ready to hire a full-time financial controller or CFO, Zeni can handle all of your bookkeeping accounting, financial reporting and accounting needs remotely and at startup-friendly cost.