In these times of great economic uncertainty, it is essential for every business to take a reflective looks at its operations and processes across each and every department. With many companies resorting to severe cost-cutting measures in the short-term, it is important for company owners and senior management stakeholders to seek out dynamic ways to future-proof their businesses. Today we are here to guide you in this process specifically for your financial department, with these 5 ways to future-proof this department.
1. Manage Your Spend
The first step in figuring out how to future-proof your business’s spending habits is to work out exactly what your outgoing costs are presently, and then take it from there. Many businesses’ spending patterns will have changed drastically over the last few months, with most businesses saving money on standard “normal world” expenses like travelling, accommodation and entertaining. You can’t know how to set up a working accounts payable process without first identifying your current business expenses.
2. Redefine Your Financial KPIs
Cash flow details, and other balance sheet details, are not enough to truly understand how your business is performing presently or how to determine what your business’s place in the future is. Your financial department needs to be measuring valuable metrics like customer profitability, customer life-time value and brand equity, in order to determine the business’s future strategies and business models.
3. Free Your Financial Staff from Repetitive Tasks
Give your financial personnel and professionals the space and time they need to collect and analyse data, without bogging them down with the repetitive tasks. Accounts payable automation is the best solution to free your financial staff of the burden of that mundane, but essential, monthly task. Give them the freedom to develop their people skills; finance is about much more than just numbers and results.
4. Hire the Right People
Even the smallest business needs an accountant and financial staff. Make sure that you have hired, or will hire, the very best candidates for the job. Your financial department can make or break your business, so be sure to only on-board the right people who are best suited to the job. Finance is about so much more than just figures and number crunching, your financial department needs to have a close relationship with your other departments in order for all the cogs of your business wheel to turn smoothly and efficiently.
5. Think About the Future
Whilst we are optimistic about the world’s recovery from this pandemic, with many vaccines on the horizon, it is important that your business’s financial department always looks for ways to protect your business against the unimaginable and unforeseeable occurrences in the future. We may not know what the future has in store for us but with the right policies and procedures set up now to deal with a crisis such as this one, you will not only be giving yourself peace of mind but you will also give your staff peace of mind knowing that there is a comprehensive contingency plan in place.