Discover 8 tips for efficient financial management
Posted: Sun Jan 19, 2025 10:45 am
A survey conducted by Sebrae found that, of every 10 companies that are opened in the country, six close their doors before completing 5 years in operation. The institution's diagnosis is accurate: poor financial management is the main reason for the premature closure of Brazilian companies .
To ensure that your business is not yet another one of these statistics, it is important to start taking this issue seriously. To help you, we have brought you 8 tips for efficient financial management. Check it out!
1. Count on the support of technology
First of all, we must keep in mind that financial band database needs to be efficient. In other words, it is necessary to:
control all financial resource inflows;
manage all outflows of financial resources;
reduce errors;
streamline processes;
reduce costs.
To be able to carry out these actions, it is essential that the manager has the support of computer programs and financial management systems. These tools, in addition to facilitating the entire data storage and control process, help to make more accurate decisions.
2. Use performance indicators
Performance indicators are another excellent tool for effective financial management. Monitoring results is just as important as drawing up action plans — after all, the data collected by indicators can be used:
as a basis for future planning ;
to adjust current goals;
to replace inefficient actions.
In practice, some important indicators linked to sales, for example, are the average ticket (how much, on average, each customer spends in your store) and the conversion rate (the percentage of customers who make purchases, among all those who enter your store).
Those that should be used to monitor finances themselves are gross revenue, profitability, return, debt level and operating margin.
3. Establish a strong company culture
Another important tip is to establish an organizational culture based on accountability, especially if the manager is not involved in operational processes. Employees need to be aware that each action involving the inflow or outflow of financial resources must be duly notified. The software mentioned in the first topic can help a lot in this task.
4. Set SMART goals
It is necessary to set smart goals for the company's finances. What does this mean? The idea is to set realistic goals that can be achieved but are also challenging.
To define it, we recommend the SMART method, which provides the five characteristics that a goal must have :
specific : specific;
measurable: capable of being measured;
attainable: attainable;
relevant: to have relevance;
time-based: temporal.
Due to a lack of knowledge on how to define them, it is common for goals not to be established precisely. So, pay attention to our tip!
5. Make a good strategic financial plan
Creating a financial plan is usually divided into five stages. See below what they are!
To ensure that your business is not yet another one of these statistics, it is important to start taking this issue seriously. To help you, we have brought you 8 tips for efficient financial management. Check it out!
1. Count on the support of technology
First of all, we must keep in mind that financial band database needs to be efficient. In other words, it is necessary to:
control all financial resource inflows;
manage all outflows of financial resources;
reduce errors;
streamline processes;
reduce costs.
To be able to carry out these actions, it is essential that the manager has the support of computer programs and financial management systems. These tools, in addition to facilitating the entire data storage and control process, help to make more accurate decisions.
2. Use performance indicators
Performance indicators are another excellent tool for effective financial management. Monitoring results is just as important as drawing up action plans — after all, the data collected by indicators can be used:
as a basis for future planning ;
to adjust current goals;
to replace inefficient actions.
In practice, some important indicators linked to sales, for example, are the average ticket (how much, on average, each customer spends in your store) and the conversion rate (the percentage of customers who make purchases, among all those who enter your store).
Those that should be used to monitor finances themselves are gross revenue, profitability, return, debt level and operating margin.
3. Establish a strong company culture
Another important tip is to establish an organizational culture based on accountability, especially if the manager is not involved in operational processes. Employees need to be aware that each action involving the inflow or outflow of financial resources must be duly notified. The software mentioned in the first topic can help a lot in this task.
4. Set SMART goals
It is necessary to set smart goals for the company's finances. What does this mean? The idea is to set realistic goals that can be achieved but are also challenging.
To define it, we recommend the SMART method, which provides the five characteristics that a goal must have :
specific : specific;
measurable: capable of being measured;
attainable: attainable;
relevant: to have relevance;
time-based: temporal.
Due to a lack of knowledge on how to define them, it is common for goals not to be established precisely. So, pay attention to our tip!
5. Make a good strategic financial plan
Creating a financial plan is usually divided into five stages. See below what they are!