Quarter Two | Understanding Your Numbers
As we commence Q2 this week, an item to prioritize in your schedule is your Q1 budget review. As an entrepreneur, business owner, or leader, you need to have a good handle on your business and financials, both critical for success. Understanding your numbers will help you make better business decisions and enable you to have a greater understanding of your revenue, expenses, and profitability margins.
We often become absorbed in our business’s day-to-day operations and allocating time in our schedule to ensure sound financial management is a challenge. Even if you have an accountant and bookkeeper, you still need to understand your financial management practices and controls to scale and grow your business.
What is Your Quarterly Scheduled Financial Management Process?
Cash flow issues can be a challenge. Understanding your cash conversion cycle will help you improve your cash flow and ensure you have sufficient resources to pay your employees and suppliers.
Questions to consider during your quarterly review:
- What financial Key Performance Indicators are you using?
- How long are clients taking to pay their bills?
- How is this affecting your cash flow cycle?
- How can you reduce payment times?
- Are there any overhead costs that can be trimmed?
- Are there any unproductive activities that you are spending money on but not seeing a true return on investment that can be eliminated?
Your Quarterly Financial Review will:
- Promote forward-thinking
- Identify short term problems
- Motivate managers to better business performance, and
- Provide a financial control process
Quarter Financial Review – 4 Steps for Success
If you need help with your finances, we are ready for you! Let’s get you the financial results you deserve. Learning about how professional development or executive coaching can help support your leadership or your leadership team, please reach out to askme@jennyreilly.com to schedule a convenient time for a complimentary strategy session.
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