How to optimize your company’s finance management
Finance management isn’t just as simple as one person heading an entire finance division. Depending on the industry you’re in, whether it’s healthcare, finance or any other industry, it takes multiple factors including both personnel and technology to optimize how your company’s finances are being managed.
Choose the correct people
Ultimately, you need people who can not only manage your finances but manage it well. Technology shouldn’t necessarily just be relied on, as it will be the people who make the decisions and plan your company’s goals. It’s recommended that the personnel you choose are also given the correct training. Using old methodologies will not only hold your team back but potentially your company.
Hiring some new blood is also recommended to ensure that you have a fresh wave of expertise in your company. Hiring people who may have had experience in optimizing their former company’s finance management may have invaluable insights. On top of this, it’s key to keep your old employees happy – if you’ve just hired a whole group of employees you don’t want to have to use another portion of the company’s budget replacing dissatisfied old employees.
Specialized data interpretation
If your company exists in the healthcare industry, having a value-based care consultant means you will have help in setting financial goals by someone who is specialized in that industry. As you develop strategies to drive performance, such advisors will develop customized measurement approaches and provide regular progress updates. Data mining, or looking through the relevant data for trends and hiccups, will ensure that someone on your behalf is looking for errors are occurring and where they can be improved.
Invest in the right technology
Having an overhaul of your IT department can bring down massive barriers to not only productivity but also finance management. If managers feel as if they have the correct, modern tools to do their job, then they will feel valued and empowered. Cloud technology means that storage capabilities are less of an issue, and software updates take priority, as opposed to replacing all of your existing hardware.
Have some foresight
On top of all this, having the foresight to see financial errors and mishaps in the future will effectively optimize how your business’s finances are managed. Denise Deveau has some very specific advice when it comes to effectively planning timing, too: “If creditors are demanding payables in 30 days and customers are paying you in 45, you will run out of money. Follow up promptly on past due accounts. Structure agreements to include supplier discounts for early payment, and establish an interest charge policy for late payments by customers.” She also recommends planning your financial needs a quarter at a time.
When it comes down to it, optimizing your business’s financial management comes down to a combination of managing the data, technology and people. If none of these are working cohesively, the management end becomes difficult. Ultimately, having the foresight, which can be helped by data insights, will prevent financial problems from hindering your overall management.