Financial management covers the systems and processes that an organisation uses to oversee and manage its income, expenses, and assets with the objectives of maximising profits and ensuring sustainability.
Unfortunately many SME business owners neither understand or pay attention to the valuable information to be gained from their financial management systems.

What are the benchmarks of best practice Financial Management?

We have annual and monthly target Gross Profit goals that we work towards each month and throughout the year. Review the checklist to see how your business stacks up

We understand the true costs of our products and/or services, which enables us to accurately review our return on completed sales each month. Review the checklist to see how your business stacks up

We monitor our overhead costs closely and have active programs in place to improve expense levels where possible. Review the checklist to see how your business stacks up

We have strong debtor management processes which ensure that Debtors either pay on time, or are quickly flagged for collection actions to ensure payment. Review the checklist to see how your business stacks up

Funding options: we are fully aware of the range of government grants, working capital, business finance and cashflow finance options available and we take advantage of those which are best suited to our situation and business.  Review the checklist to see how your business stacks up

Our financial management processes ensure that we always have sufficient funds available to comfortably manage day to day operations, deal with unforeseen emergencies and budget for future developments. Review the checklist to see how your business stacks up

 

Next Steps

Rate your business against all of the elements of a best practice business

Find a Synergy48 best practice financial management specialist to help you implement best practice financial management in your business

Read about other best practice business benchmarks

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