Proper management of financial resources is a critical part of business long-term viability. While changes in business have been significant and software have changed processes forever; the basics have not changed.
In order to provide the essential support needed for business the finance team must:
There is no substitute for accurate real time recording of financial transactions.
1. Accurately record and track finances.
Good bookkeeping is a significant investment in your financial wellbeing.
2. Manage Cashflow.
Invoice quickly and expect prompt payment – you are not a bank. Manage cash, banking arrangements debtors and creditors.
3. Pay your Taxes.
Keep up to date with all lodgements and statutory requirements – Taxation, PAYG, BAS, IAS, Payroll Tax, Superannuation, Workcover. Always meet reporting obligations even if payment terms required.
4. Internal Control.
Owners must have oversight, team to implement, manage internal control systems,
and be open to review.
5. Control Costs.
Accurate, on-time and meaningful budget to actual reporting of both gross profit and overheads is essential.
Stock Management. Implement and oversee stock management to ensure that working capital is effectively utilised.
Oversight of the cash requirements and ensure there is access to sufficient cash. Keep relationships with bank and understand owners demands for dividends/ distributions.
7. Automate and Systemise.
Simplicity is the key. Deskill and automate whatever possible. Have systems for what can’t be automated. Monthly reporting should be Accurate, On-time and Understandable.
8. Know their level of competency.
Work with, not against the external accountant and seek new talent early.
Finally look after the finance team, they deserve the attention. As stated in the 1964 Sydney business meeting ‘..look after him, because what I say is this – this fellow will never make you rich, but this fellow can send you broke.’