Strategies To Strengthen Financial Management

Five Strategies To Strengthen Financial Management Of Your Company

strategies to strengthen financial management

Too many businesses wait until a crisis occurs before they start to focus on improving their financial management. Often, by that time, it can be too late. By setting aside an hour now to evaluate the strengths and weaknesses of your company’s financial management activities and systems you can save a lot of time and aggravation. It can also help increase your profits, and at the end of the day that is what it is all about.

The following are five strategies that will help you start to build a strong financial foundation and build value in your company.

1. Strategies To Strengthen Financial Management: Set up a financial control system

The first thing you need to start with is a control system so that there is consistency in your process and procedures. A control system is designed to prevent and detect errors in your daily activities. For example, is there is a standard way of processing your receivables, payables and inventory? If there are no standard guidelines to follow, there is probably no control system.

2. Strategies To Strengthen Financial Management: Have daily access to your account information

Make sure that you can access your account information every day; it is invaluable to managing your cash effectively. With most banks providing internet access at a reasonable cost, there is no reason not to have instant access to account information.

3. Strategies To Strengthen Financial Management: Manage your cash components

Concentrate on managing your three main cash components: accounts receivable, accounts payable and inventory. Read about how to Manage Cash Components

4. Strategies To Strengthen Financial Management: Budget

It is fundamental, you need to plan for growth and you need to forecast for problems. You need to prepare a budget. Besides completing a budget for expected sales, you should also complete a budget for a disaster situation, like your sales are cut in half. The benefit is very straight forward; it forces you to ask yourself how you will be able to keep the company running in such a situation. It will also point to areas where you may be able to save money right away and free up cash flow. It’s like having a disaster plan; you only have to act on it when disaster strikes, but it is much easier to concentrate when you do not have a crisis at hand.

5. Strategies To Strengthen Financial Management: Develop a strong relationship with your Bank

Devote attention to building relationships with your bank. Always keep them up to date on where your company stands. If you hit a difficult patch it is much easier to get your bank on board if they understand your business. Contrary to opinion, banks do not necessarily jump ship as soon as you fall into trouble. They are willing to work with small business through tough times, and gaining their trust to do so is much easier the more confidence they have in you and your company. They way to accomplish this is to be transparent in your dealings and to give them timely financial information.

Use your bank as a resource for cash management. There are products available that can increase your cash flow, or arrangements that can be put in place to increase your interest returns. But you still need to make sure they are cost effective.

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Managers Become Great Leaders

10 Ways New Managers Become Great Leaders

Managers become great leaders

How Managers become great leaders…

“It is a terrible thing to look over your shoulder when you are trying to lead and find no one there.” – Franklin D. Roosevelt

Persons accepting promotion from individual contributor to leader often do not realize the extent of the change. All too often they assume that they will be doing basically the work as before except that they will now be ‘in charge’. In reality, a major change in responsibility is occurring.

The new leader requires a different set of skills, attitude and behaviours. When we asked seasoned leaders what they wished they knew then that they know now about how Managers become great Leaders, this is what they said:

1. Research your new job. Find out all you can about: the company (if it is one you have not previously worked for); the department you’ll be working in; your new job responsibilities; the history of the position; your predecessor and his or her approach to the job; and your new subordinates – if you don’t already know them. Also learn the purpose of your department, team or unit – what work is being done, what is the current state of play; your boss and your boss’s boss expectations and if you have customers, what their expectations are.

2. Managers Become Great Leaders by planning in advance. Form at least a tentative plan – it will be harder to plan once you are in position. Think about what you want to achieve and how you would like to develop yourself to match the demands of the job. Reflect on your strengths and weaknesses – how can you deploy your positive qualities and experiences to advantage and compensate for your limitations. Above all, don’t depart too dramatically and quickly from established practice.

3. Get to know your team. Meet with your team first together and then individually. Don’t skimp on time – these first meetings set the stage for building a productive relationship. Listen carefully, eliciting information about the work and about them as individuals. Consider leaving the team with a question to reflect on: “What should I do or not do to help you perform your job effectively?”

4. Managers Become Great Leaders by focusing on important relationships. Introduce yourself to customers (internal and external); suppliers, and the people who make up the professional network surrounding your job. Get to know your boss immediately. Find out such things as: the frequency of status reports (daily vs. weekly vs. monthly); the amount of information (just give me a quick update vs. a 5 page report); and the desired mode of communication (email, voice mail, face-to-face).

5. Identify likely standards of performance. Observe, listen and note what is acceptable and what is not in your new environment. Within a few weeks you should have some ideas of what your staff expects of you. Identify the criteria by which your boss, your peers, and your customers will judge you. Be honest with yourself – can you meet those standards? If not, what do you need to do? Consider who could help you and what the price might be.

6. Power up your people engine. Managers Become Great Leaders by making a point of noticing and showing appreciation when someone puts in extra time and effort. If you are aware that another team member wanted or expected to get your job, acknowledge the fact. Express the hope that you can work together on a friendly basis and say that you look forward to his or help.

7. Don’t be the lone ranger. Managers Become Great Leaders by involving team members. Listen to what they are telling you, especially if the team has been working together for a long time. They probably have a better sense, then you as the new manager, of what is going on, what needs to be done, and where the sand traps are.

8. Managers become great Leaders by setting an example. Demonstrate strong personal commitment to achieving your department’s or unit’s or team’s goals. Build warm, friendly relationships rather than remain aloof. However, there is a fine line between being friendly and being a pal. When you put on the manager’s hat, your role changes. You want respect first and then hopefully being liked.

9. Take stock regularly. Take time to reflect on your progress at the end of your first week, your first month, and your first quarter. Identify issues that require immediate attention, and ways to deal with them, before they grow into big headaches. The pattern of behaviour you set in your first three months will be extremely hard to change later. As a new leader, your primary task is to listen and learn.

10. Managers Become Great Leaders when you discover the leader in you. You can’t make sense of your role as a leader unless you know yourself first. Look to others for guidance but be true to who you are. “Leadership is a matter of how to be not how to do it. In the end, it is the quality and character of the leader that determines performance and results”, according to Frances Hellelbein of the Peter Drucker Institute.

By following these top tips about how Managers Become Great Leaders you can be sure that you become a super not blooper leader.

Marcia Zidle, the ‘people smarts’ coach, works with business leaders to quickly solve their people management headaches so they can concentrate on their #1 job ­ to grow and increase profits. She offers free help through Leadership Briefing, a weekly e-newsletter with practical tips on leadership style, employee motivation, recruitment and retention and relationship management. Subscribe by going to

Managers Become Great Leaders as they accept the new role.