Most of us think if we get branding down, market effectively, produce efficiently, and have great looking landscapes, we’ll charge the going rate and everything will work out fine. In other words, work smart and the money will take care of itself. It doesn’t.
Just as you need to systemize Admin, Production, and Management, you need to systemize the financial aspect of your business as well. Systemized finance ensures, you have truthful financial indicators on which to make your management decisions. Money signifies value, quantifies results, and is the fuel for making an impact.
- Leadership – choosing your impact,
- Management – developing people and systems to achieve impact
- Finance – the discipline of planning, analyzing, and managing the flow of money through your business to fuel impact.
Leadership. Management, and Finance, are systems and the disciplines upon which you build your business. Every bit of your business is reflected in your financial reports. Financial records when accurate, indicate where you need to apply the disciplines of Leadership and Management. A business that works for you, without knowing the truth about the numbers is impossible.
Elements of Your Finance System
Finance systems are basic business activities and the documents they generate; invoices, purchase orders, bank deposits, etc..
Financial quantification is the collection, organization, and analysis of information about everything in your business that can be measured in currency (the numbers).
Financial Control systems are the processes you put in place to ensure this information is accurately captured. The information is then used to generate a variety of reports, each of which has a specific management purpose. The reports, augmented by your personal observations, inform and support your business management decision-making process. Your decisions shape the way you orchestrate, innovate and ultimately the impact your business has on you, your employees and the community.
Great business managers use the numbers to get their game on. In uncertain times not knowing your numbers will take you right out of the game. If you have questions about your finances please reach out. -dp