The key principles to boost financial performance of a business seem like hidden mysteries to many business owners. These are often overlooked or get tipped into too-hard or too-busy baskets. However, these are the cornerstone for financial success and something that big businesses fully embrace. 

Here are 5 key principles that small businesses can apply to enhance financial performance.

Fincraft Accounting & Advisory: Boost Financial Performance - infographic
FREE DOWNLOAD: Key Principles to Boost Financial Performance

1. Change your mindset

  • Think long term and the big picture.
  • Set strategic and specific business goals.
  • Set financial management strategies to measure and drive success.

2. Set business goals, strategies and plans.

  • Develop and use a business plan to guide you through each stage of starting and managing your business.
  • Review and update your plans periodically.
  • Seek guidance and advice from the right people to support your business journey.

3. Set financial targets and timelines.

  • Set financial targets that link to the business goals.
  • Set annual budgets and update assumptions at least every quarter as new information comes to light.
  • Clearly define achievable timelines for targets.

4. Measure, report and monitor

  • Establish and evaluate 5-7 KPIs for your business to manage and track their progress against budgets.
  • If you are missing revenue and expense targets, investigate reasons why and take corrective actions.
  • Understand performance, drivers, trends, risks and opportunities and continually refine the budget assumptions.

5. Make informed decisions based on financial data

  • Use financial information, trends and insights to grow sales, reduce costs, increase efficiencies, improve product/service offerings, assess investments, etc.

How would you rate your business’ financial performance? 

To improve your current financial performance rating, book your time for the initial Financial Performance Review.

Need more information? Email me: [email protected]