Skills for Managing Your Business Finances
These are the most relevant skills which a business manager should possess while managing the finances of his company. Take a look!
In today’s business environment, organizations that manage to maintain control over their finances will have a lot to gain. Nowadays, we’re surrounded by opportunities. If by chance we get a brilliant idea that needs a decent budget to be implemented, having the money right from the start will give you a huge boost.
That was just an example. However, managing your business finances is almost everything. It basically keeps your business alive, not allowing it to go downhill. A great finances management will also show you the overall direction and performance of your business, all in real-time.
As a business manager or owner, it lies in your own responsibility to set your company on the right path. Therefore, acquiring knowledge, expertise, and skills is definitely essential for your long-term well-being.
In today’s post, we’re going to discuss the most relevant skills which a business manager should possess while managing the finances of his company. First off, pay attention. The second thing that you need to do is take action upon what you’ve learned. Without further ado, let’s get started.
Communication & Networking Skills
Before managing any finances, your business needs to produce money. During your start-up phases, you might manage to pay everything using your own savings account. However, to be successful in the long term run, you need to discover better sources of income such as banks, investors, and venture capitalists.
In most of the cases, you have to do your homework very well, you need to develop an extremely powerful presentation, and lastly, you must properly ask for what you need. If you possess “people” skills, getting what you desire for your business should go smoother than otherwise.
Discipline pays off a lot; if you care to cultivate this trait, your presence as a leader will definitely have an impact on your business finances and budgeting. Some entrepreneurs simply can’t differentiate the things and actions that they want in rapport with the things and actions the company needs.
However, many times, these differences are being remarked, but the lack of discipline in the leaders of these organizations are clearly visible, as the actions are headed towards the needs of the individual, and not of the company.
Before freaking out, let me assure you that you don’t need to be a professional in accounting. However, being the business owner/manager, you still need to have the control over what’s going on. Obviously, I’d suggest hiring a professional bookkeeper, an accountant who knows his job well.
Still, you should grasp the basic concepts of numbers. You should know what your business is producing and what it is consuming. Start by learning the terms that appear in the financial statements. Once you understand the words, start learning the system.
Each company has different accounting needs. What you need to do is understand what your company is doing and begin to learn the specifics of your company’s accounting. Focusing on your business accounting only will turn out to be more efficient and productive for you.
Planning & Project Management Aptitudes
Brian Tracy beautifully said that “1 minute in planning equals 10 minutes in action.” Have you thought about planning this way until now? Well, if you don’t believe it, I really suggest you try. Planning and project management are two separate things, yet they are very much connected to each other.
A manager who knows how to plan the goals and key actions of the company will keep the performance high and constant. These are skills that come with time, but their progress can also be quickened up by actively involving in the growth process.
How? Well, it’s actually pretty simple. Take the best books on project management and study them each. Once you’re done with that, find the best resources on how to plan business or personal actions. When you’re done, start implementing.
Related Article: A Path to Productivity
Good Variance Analysis
Every manager needs to be capable of analyzing the variance against the forecast or budget. Whether the variances are unfavorable or favorable, it really doesn’t matter and it still has to be done.
Once a manager identifies the variances, it should link them to the previous happenings in their departments for the accounting time. Then, he should determine whether these variances are temporary or not, and he should include them (or not) in the financial forecast of a specific timeframe.
A good business manager should always explain the budget variances based on his knowledge and expertise. Otherwise, a financial department should be formed.
Leadership skills are also necessary in case you want a consistent flow of positive results. Once you identify problems, solutions must be found immediately. If you possess leadership skills, you’ll perceive the problems from different angles.
Moreover, you’ll also understand which of your resources (tools, employees, contacts) might be a good solution for the problem. Great leaders happen to be also great problem solvers, so if you were looking to actively develop a new trait, leadership should be your first choice, as it’ll always pay off well in the long term.
The Ability to Outsource Properly
Outsourcing tasks in an efficient manner will definitely contribute to your business finances. You’d first think…how could paying different individuals be profitable for my business? Well, it’s simpler than you think.
As a simple example, whenever I need to outsource the creation, editing, or proofreading of my content, I pay an expert writer from Essay scholaradvisor to take care of it. To tell you the truth, all the money I spend paying this writer happens to come back to me doubled.
Why? Well, getting rid of time-consuming tasks which aren’t really my forte is a huge time and energy saving choice. I can spend more time thinking strategies, managing problems, and eventually improve the finances of my business.
Managing your business finances successfully isn’t that hard. Obviously, if you’ve never done it before, it’ll take some time until you become accustomed to how things work.
However, once you understand that managing finances goes like any other skill (practice, practice, practice), you’ll no longer have trouble improving yourself and your business on a consistent basis!
About the author:
Laurа Buckler holds an MA Honours degree in Marketing and a Masters in English Language. She has taken a variety of roles, starting from media and pr, to campaigning and public affairs. At this point, Lauren holds 6 years of experience working in marketing and communication, including blogging and web copy. Follow her on twitter.