The Financial Toolkit Every Fast Growing Company Needs
If you're the owner or leader of a business and you've never had the chance to work with a highly talented accounting & finance team, chances are you've never been fully "read in" to the 5 core financial management tools you need from your team to operate at peak financial performance.
This is a lot like trying to become a fighter pilot without learning about the basic instruments for flight control... Altimeter, Tachometer, Compass, etc.
Just like with a pilot, without this fundamental knowledge, the consequences to you can range from "We flew through a cloud, so no big deal" to "We're in a tailspin. Tell my wife and kids that I love them".
Unfortunately, this knowledge gap causes many CEOs to under-spend on accounting and finance duties because they don't understand the ROI on each successive tool in the kit.
Now -- you may be thinking: "This is just a plug to get me to spend more money" and you'd be wrong.
We say it because it's just true.
Over 90% of the businesses we've worked with over the last decade had no idea how helpful this toolkit would be to them until they trusted us to implement it.
You'll soon see why.
This blog article provides a brief overview of the 5 fundamentals you will see in any well-run, forward-thinking accounting & finance department. By the end of this article, you will be able to assess if you need more help or less in your accounting & finance department.
THE 5 FINANCIAL TOOLS SLIDE DECK PRESENTATION
It All Starts With Boring Basics...
At the base of all Financial Performance Systems is solid accounting. Without this, no instrument in your flight control panel will actually work. You'll be frequently guided off course or - even worse - give up on the idea that you can control your financial situation.
Most small businesses stop at this point, but they're leaving most of their potential ROI on the table as a result. They must move on to the tools that transform the "Raw Materials" of good accounting about the past into the "Finished Goods" of focused thinking about future performance.
Once solid accounting is in place, the next two tools most companies need in their toolkit are:
the Key Performance Indicator Dashboard (that you actually look at)
a Budget (that is tied to an employee's name)
All this - mind you - needs to be wrapped into an accountability system that is focused on your long-term goals. Without the focus on accountability and execution, none of this matters.
Because just counting things doesn't help employees know what to do. Someone within your company who has the ability to hire and fire people has to be engaged in the process to make sure that people do the work that's needed to move the needle. Period.
Recently we gave a presentation to help a cohort of about a dozen business owners walk through the 5 major financial tools they need to stay focused on growth.
Watch this if you want to get a more in-depth understanding of the toolkit...
THE 5 FINANCIAL TOOLS VIDEO PRESENTATION
By focusing on the 5 core tools in this financial performance toolkit, you'll have far better visibility of what's happening in your business and what to do about it. The end results in almost every company we've worked with that implemented this entire system was an increase in net income of at least 15% a year and their results compounded year over year as well.
If you need help assessing your accounting & finance department's financial performance, we offer a free 1hr financial strategy session that will help you determine what you need to do in order to improve your Financial Performance.
Click the link below to book your strategy call now.