Many people think of financial planning when they think of their personal bank account paying their bills, budgeting, setting money aside for rainy days, and tracking their expenditure. Financial management is more than just that. It involves tracking and monitoring all money that enters and leaves a company. It also involves making strategic decisions to make the company as financially secure and profitable as possible.
Every company should first establish themselves goals, including quantifiable targets such as profit maximization and expansion of the business. Then, they have to establish how they will achieve their goals. This means creating financial reports, setting up accounting systems and determining the best method to increase their profits. Even minor improvements to the management of finances in a business can have a big impact on its short-term as well as longer-term performance.
The finance team is responsible for the money that enters and leaves a business. They are the ones who set up and implement the company’s banking procedures. They also oversee the issuance of shares and bonds and manage loans and debentures, and make all investment decisions. They must be able to balance the books and ensure that there is always enough cash on hand for all operating expenses, while also ensuring that new investments will provide a healthy return.
Zeni can help you with your bookkeeping and accounting needs and even provide financial reports, in the event that your business is growing quickly and you are not yet ready to employ a full-time CFO or financial controller. Zeni offers startup-friendly pricing and can handle your financial reporting, accounting and bookkeeping from a distance.