Keys to have Good Financial Management

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Keys to have good financial management

All areas of the companies are important for the proper functioning of these, although it is true that some are key to the rest of workers can perform their activity. One of them is financial management by an experienced financial manager like Sean St John. It is essential to establish a direction of the resources as efficiently as possible, because only in this way is it possible to obtain maximum profitability and, therefore, to make the company grow. Below we analyze some keys to take into account next year and why you should hire an expert financial manager like Sean St John Toronto.

Cost review:

It is interesting to adopt the habit of, at the beginning of a new exercise, to review all the costs that your company has. It is not uncommon to realize that there are services that you no longer need, or that even some of them could be unified in a single provider. The objective is twofold: first, to control all the services and companies with which the different departments of your company work; and second, try to reduce those costs that are not necessary.

 Alternative formulas for external financing:

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It is not a drama that your company needs external financing. Ask for it, but before doing so, it is essential to evaluate all the options available to you. In this sense, you can contemplate options such as:

Crowd lending: several private investors agree to finance your company in exchange for an interest rate. This would be the alternative to applying for bank loans.

Business Angels: in this case we are talking about a kind of “patrons”, that is, people or investment funds that bet on a company. Not only do they help you financially, but they put their knowledge and experience at the employer’s disposal.

Play funding: this modality consists in creating a spot that can be inserted in the advertiser’s website that wants to “sponsor” it. Then, if the video achieves a certain number of visualizations, the entrepreneur will receive a reward previously agreed upon.

Big Data & Artificial Intelligence are here to stay:

Throughout this last year you have heard about these two concepts on many occasions. Digital transformation is a reality to which CFOs have to adapt; the rules of the game have changed. The automation of the management and financing processes is key for optimal performance. Using management software, analyzing data and controlling budgets are functions that must be done mechanically thanks to the inclusion of ERP and similar software’s. In this sense, tools such as Info manager, which help avoid financial risks, are an example of how the intelligent use of data allows a much more effective management.

Cyber security is the new challenge of digitalisation:

Carrying out banking transactions online is a step towards which more and more companies are advancing, since it provides greater flexibility. However, it carries more risk at the level of cyber security. Therefore, as digitalization increases in this sense, it is necessary to intensify the security mechanisms and prevent the data of your company from being endangered.

 Evolution of the CFO concept: The Chief Financial Officer (CFO) is the new term to designate the person responsible for financial management. This nomenclature also implies a change in the conception that companies have of this profile.

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