Understand the importance of Corporate Financial Control for business growth

Corporate financial control helps the entrepreneur to keep accounts organized on a day-to-day basis, ensuring that resources are being allocated correctly and understanding the right time to make savings or new investments. 

In addition, it is essential for managing the company's cash flow and working capital, two points that are also very important for the financial health of a business. 

Without this close monitoring, it is difficult for a company to consolidate itself in the market and grow.

Here we also cannot fail to talk about financial preparation to face unforeseen events. Entrepreneurs know that it is always necessary to be ready to deal with unexpected situations – and one of the ways to do this is to ensure that the company has money to sustain itself in difficult times.

A great example of this is the pandemic! Many businesses have closed because they couldn't keep up during the time they needed to stop working because of social distancing. If they had been doing business financial control, certainly some would have been able to go through this time more smoothly!

Know how to do Business Financial Control?

Now that you understand the importance of this practice for your company, let's show you how you can take it out of the field of ideas and bring it to your business's day-to-day. Check it step by step!

Change your mindset.

Have you ever stopped to analyze the great learning that the beginning of the year promises bring with them? Have you caught yourself procrastinating the financial goals set at the beginning of the year?

At one time or another, we've all procrastinated. Don't deny it. It is important that we acknowledge the problem so that we can bring about substantial change.

If you want to achieve the goal set for your Corporate Financial Control, you need to understand the negative beliefs that make up your mentality and that hinder the construction of edifying habits that will promote a financial revolution in your enterprise.

In addition to what has already been mentioned, organization will be a consequence of your mindset. If you want to take a consistent financial position, it will be imperative to encourage and then cultivate uplifting financial habits.

Effective business financial control depends on it!

Set performance goals and standards

Having well-designed goals will help you understand what needs to be done to achieve them. Therefore, before getting your hands dirty and starting to tinker with the company's accounts , you should reflect on the company's future and understand where you want to go.

Measure current performance

Afterwards, it is time to understand how the financial health of the business is currently. Does the company have debts? Are you tight with bills? Can the partners make a profit from the operation?

Compare performance against targets

Now it's time to compare the two reflections you made. Is the current situation of the company favorable for the pursuit of its objectives? If the answer is yes, you're ready to organize your finances and move towards growth.
But if the answer is no, you need to draw up plans to solve these problems before thinking about growth!

Take problem-solving measures

Depending on the situation of the company, it will be necessary to take some resolutive measures. Some examples are the reduction of costs with dismissing people, negotiating the rent, renegotiating debts, negotiating longer terms with suppliers , actions to attract customers, among others.

Don't leave the organization aside

Minimizing your risks and, consequently, increasing the probability of making an accurate decision will be ideal for your business, do you agree?

Imagine having the necessary information, which will enable you to analyze the real situation of your enterprise in a quick and practical way. That, at the very least, will be amazing, won't it?

However, for this to be possible, one point will be crucial to make this issue possible: organization.

The constant pursuit of companies basically boils down to forecasting scenarios. The great motivation is precisely the financial issue. No money, no business.

Corporate Financial Control is the result of some measures, such as reliable financial information and their registration. This is why organization is so important to the process.

Stay on top of the main practices that should be seen as premises for carrying out Corporate Financial Control:

• Management of Invoices;
• Practice of Bank Reconciliation ;
• Realization of Cash Flow;
• Control of Accounts Payable and Accounts Receivable .

Depending on the size of your company, the practices used on a day-to-day basis to optimize your procedures and how functions are delegated within your company, you should concentrate the care of controlling your invoices and your purchases on a single person, in addition to using Debit and Credit cards to register your operations. 

This will maintain the quality of the information that will enable your Corporate Financial Control.