4 Tips That Will Help You Achieve Financial Success
It’s been said that in order to create success in your future you must first understand your past, and this has never been more true than when looking at enabling financial success within consulting firms.
A primary way that a firm can do this is with accurate data and more importantly, effective data and financial analysis – and not just a one-off review either, it requires constant monitoring to stay on top of any emerging patterns or trends.
Don’t worry though, with the right tools and plan in place it can be quick and painless.
With this in mind, there are four main points you should consider:
1. Conduct internal and external audits
A SWOT analysis is an essential tool that will help you better understand your business and where the opportunity, and dangers, lie. By conducting this analysis on a regular basis it means you will not only have a stronger understanding of your firms operations and the broader industry market, but you can also implement and monitor financial KPIs specifically designed to target problem areas.
2. Break down silos
You’re not going to be able to drive the firm towards success alone but rather it is going to be essential that you and your finance team work with other departments to share information, knowledge and resources.
For example, a fast billing cycle is essential to maintaining client satisfaction and managing cashflow. If you have a comprehensive understanding of how many invoices have been queried or delayed, you may be able to identify problems with the accuracy of the invoices or payment methods. By sharing this insight, it encourages an open discussion about your organisational development goals.
3. Ask yourself the right questions
This point is about challenging yourself and your team to better know your business, better understand the industry and think of creative and innovative ways to continue driving for success.
It’s crucial that there are ongoing comparisons between projected and actual financial performance so that you are able to plan ahead and better understand any patterns or trends that emerge regarding profit levels and flow. This will also help you better determine how resources could be optimally utilised and which gaps need to be filled.
4. Gain visibility
This again relates to having the right tools in place. An effective ERP software solution with functional financial KPI dashboards and pre-defined metrics provide umbrella views of the business as well as any financial trends or patterns emerging.
Things to remember
- Identify your financial KPIs early and use them as the base of your financial strategy
- Compare and contrast projects (past, present and future) to forecast future financial performance
- Consider how you can turn threats into opportunities and weaknesses into strengths
- Evaluate industry trends and patterns to determine your financial strategy and spending
- Invest in the right tools to give you a good overview of your firm and its operations
For more information on how you can analyse your data to create a stronger financial future for your firm please download our eGuide: Understand Your Financial Past To Create A Profitable Future