Financial management is an important skill to acquire when owning a business. Six steps to Understanding the Basics of Financial Management is a six-part bundle full of industry research studies, basic knowledge and best practices on how to properly manage the financials of your company.
Follow these six steps, which include the tools you need to ensure success in growing your business and maintaining its financial stability.
Most CompTIA resources are available free of charge to our Registered Users. Anyone can sign up, though some resources are only accessible to those who purchase Premier Membership.
1. To understand any type of business management you need to be aware of the trends and direction of the trade you are in. In the IT industry, recognizing the technology and channel trends and potential growth rate are all key factors to watch out for. Being aware of the industry’s innovations and growth will help you keep track of how your own business is doing.
IT Industry Outlook Study 2017
2. As your business grows, it is important to master financial management principles early on. These become critical once a business has survived its formative stages and is starting to take shape in the industry. Discover the goals and tools of financial management; explore the importance of the chart of account; define and examine the process of trend analysis; and learn cash management trends and strategies – all of which can be tailored to fit the needs of your own business.
Executive Certificate in Financial Management
3. Understanding a balance sheet is the first step towards succeeding in financial management. Some use it as a tracking report, while others view it as a summary of resources available for running a company, and still others see it as the companion to the profit-and-loss statement that is used to keep all accounting records in balance. Defining the term is only part of it; actually understanding how to build and maintain a balance sheet is the foundation of a successful business.
QSG to Understanding Your Balance Sheet
4. Deal-making is not just about convincing the customer that your product meets specifications. It now requires understanding the customer’s situation, its requirements and organizational processes. Build your sales team into better deal-makers by teaching them how to work deals into service agreements that all parties can depend upon.
Quick Start Guide to Contracts and Negotiations
5. It is smart to start planning at least two years in advance to either merge or sell your business. What is the better option? What is the best way to go about it? Understanding the right timing and best practices can make this process easier to deal with.
Quick Start Guide to Mergers and Acquisitions
6. The final step in assuring financial stability for your business is assessing your exit strategy. Although this is important at all points in the business lifecycle, it becomes most important towards the end. Exit plans help executives understand goals for the business, while also giving owners peace of mind about the financial security of the company.
Exit Strategies Toolkit