The financial management department acts as the grease of the business that makes the running of the business smooth. According Dr Moe Pisciottano the way you manage your finances determines how fast your business grows. Your financial position determines the kind of ventures you get into and where to invest. To enable growth, as a business person you need to understand your financial resources to enable you sustain the business. To establish this, there are some important aspects that you should effectively handle.
1. Analyze your reason to have a
financial strategy
The Grow with Dr Moe program
states that whatever activity that is undertaken, reason should be well
defined. Therefore it is important to make the reason of having a financial
strategy. A strategy can be defined as a plan lay down to ensure set goals and
objectives are achieved.
2. Integration of financial roles with
the overall management plan
The other important aspect that requires
handling is how finance department objectives are integrated to fit in the
overall business objectives. The financial department is within the business
management which is responsible for decision making and running of the
business. The roles played by the finance department should be to help in the
achievement of the business goals and objectives.
3. The function of your financial
management team
The finance department is a very
sensitive department and those involved in its running should not be just
random people but people who can be held accountable. Due to this, the finance
management team should be carefully selected with qualifications that are
necessary for the smooth running of the department. The functions of this team
include making financial decisions, managing the profit and evaluating business
resources and expenses.
Failure to define financial goals and
objectives and planning how to achieve them is the beginning of collapse of
your business, cautions Dr Maurice Pisciottano.
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