The majority of people think of financial planning when they think of their own bank account: paying their bills, budgeting, setting money aside for rainy days, and tracking their expenses. But, financial management for business is more extensive than that. It involves controlling and tracking all the money that comes into and leaves an organization. It also involves making strategic choices to make the company as secure and profitable as it is possible.
The first thing that all businesses must accomplish is to set goals for themselves, with goals that can be measured, such as profitability maximization and growth. Then, they have to decide how they can reach those goals. This includes preparing financial reports in addition to setting up accounting systems and determining the best way to grow their money. Even minor improvements to the management of finances in a business can have a significant impact on its short-term as well as long-term success.
The finance department is accountable for the money that enters and leaves a company. They are responsible for setting up and managing all banking procedures in a company. They oversee the issuance and management of shares and bonds as well as debts. They also make investment decisions. They must be competent to balance the books and ensure that there is always enough cash in the bank to cover operating expenses and also ensure that any new investments will provide an acceptable return.
If your company is growing rapidly, but you’re not quite ready to hire a full-time financial controller or CFO, Zeni can handle all of your bookkeeping accounting, financial reporting, and accounting requirements remotely and at startup costs.