in some institutions, managers and leaders to fall into the trap of believing that financial management is something that the accounts are fully responsible for the team. While there will be areas such as cash management, payroll, pay suppliers and collect payments from customers that are likely to be handled by the accounts and financial management team located in the jurisdiction of all managers and leaders. It is often Mangers concerns about this area, often to believe that it is difficult and complicated. The truth is that if you are an expert in your area of work, you can excel in financial management. What are my essential tips?
Tip 1: be actively involved in the budget process
Most companies now devolve responsibility for the budget as much as they can. As a result, managers have the opportunity to actively participate in determining things like:
Q sales volume
Q temporary employment to fill vacancies cover
o Employment to deliver the sales levels
Q buying preferences in terms of the products that will be used in providing the agreed quantities
o investment in equipment or new facilities
not miss out on an opportunity to determine your budget.
Tip 2: Be clear on your assumptions
budget is a plan for the future based on the best evidence that we have in the time that is in it. You will have to make assumptions about things like sales growth, and staff turnover, sickness, and inflation rates, etc. to make sure that when the presentation of the budget assumptions stated clearly.
Tip 3: Work with your accountant your
accountant who works with you at work is essentially personal business your adviser. Use your accountant in this way and will reap many benefits. Accountant gets a better understanding of your area of the business and the main drivers of revenues and costs, which will be very useful when it comes to reviewing performance throughout the year.
In addition, the accountant can model results for you based on different assumptions, and help you get a clearer much of the risks that may need to be managed image.
Tip 4: Share of the budget with your team
manager and the leader, your success depends on team results. Take the time to share your budget with your team, including key assumptions on which it is based. If this team knows what needs to be achieved in terms of financial results, and will look to do the right things from an operational perspective to get the best result.
Tip 5: take responsibility
when the going gets tough it is very easy to begin to look elsewhere for excuses. If you have participated in the budget that you've signed up for, and focus your energies on getting results rather than the injustice of the current situation mode.
Tip 6: Performance Monitoring and take action
Make sure that you have a process to monitor carefully the actual performance against budget. If things are going well see if there was something more you can do to boost performance even further. If on the other hand, things are not going well as expected, and focus on the changes that need to be made or the work you need to take to get back on track.
Tip 7: Focus on the most important numbers
when it comes to financial management, managers can sometimes get lost in too much detail and trivia . Be clear on what are the 2-3 big numbers you need to pay attention, because it will more than likely make up about 0% of your budget. In most companies this would be:
o Income from sales or services
costs as staff salaries
o Cost is the main salary of such materials
make sure that you have a good understanding of what affects the numbers on the business unit level so that you can keep things on the right track.
At the end of the day, the internal financial data such as budgets only reflect what happens in practice in a common currency called the money. Keep this at the forefront of your mind and you have a great opportunity to excel as a manager.
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