The majority of people think of financial planning when they think of their own bank account: paying their bills, budgeting, putting money aside for rainy days, and tracking their expenditure. However the process of financial management for businesses is more extensive than that. It involves monitoring and controlling every penny that flows out and enters the company. It also involves making strategic choices to make the company as financially secure and profitable as is possible.
Every company should first establish themselves goals, including quantifiable goals such as maximizing profits and expansion of the business. Then, they need to establish how they will get there. This means preparing financial statements, setting up accounting systems and determining the best way to grow their cash. Even small improvements to a company’s financial management can have a big impact on its short-term as well as longer-term performance.
The finance department is responsible for the money that enters and leaves a business. They are the ones who design and implement all of a company’s banking procedures. They oversee the issuance and management of shares and bonds as well as debts. They also make investment decisions. They must be in a position to balance the books and ensure that there is always enough cash available for all operating costs, while also ensuring that any new investments will provide an adequate return.
If your business is growing rapidly, but you’re not yet ready to hire a full-time controller of finances or CFO, Zeni can handle all of your bookkeeping accounting, financial reporting, and accounting requirements remotely and at startup-friendly cost.