Financial Management

Financial management is critical to the success of any business. Improving your business performance and productivity requires sound, ongoing financial planning.

Budgeting and cash management will assist you to manage your business finances. Developing a budget has many managerial advantages.

Cash management is the process by which you can manage the proper balance between a healthy cash position and achieving maximum profits. Profits may be tied up in stock, debtors or assets. If these items cannot be readily converted to cash, your business may not be able to meet its debts as they fall due.

Tools

The 7 Steps to Business Success is a checklist to help assess the viability of a business prior to starting up. It contains a section on "Considering your Finances" to assist you in identifying and understanding this critical issue.

Business Readiness Diagnostic - 10 minute quiz that takes you through some of the key considerations and steps you should complete to successful start and run your business.

The Department of Employment, Economic Development and Innovation runs a variety of seminars and workshops on common small business topics including:

• Essentials for Business Success Workshop - Financial Management - The How To
• Essentials for Business Success Workshops - Retaining Your Profitable Customers 
• Investment Facilitation Workshop - teaches emerging growth companies how to raise equity capital
• Managing for Profits - provides guidance on understanding the financial results of your business and the appropriate action required

Benchmarking a business may also assist in understanding how well it is performing and to identify areas of improvement. The Department of Employment, Economic Development and Innovation provides an online Financial Benchmarking Tool for purchase.

SmartSkills Online - an interactive, online tool for helping business owners develop new skills - has a finance and cash flow module.

Resources

Visit the business sections of financial institutions (banks) websites and take advantage of a range of financial and budget calculators provided on these sites. Additionally, search the Internet for these tools.

The Department of Employment, Economic Development and Innovation publishes Fact Sheets about common business topics including:

• Financing Your Small Business
• Annual Cash Flow Forecast
• Annual Profit Budget
• 10 Simple Rules for Credit Control
• Accounting and Record Keeping