In this column, we continue with a Test of Company Finances – and with this article we finish our series of articles about Corporate Finance, Procurement and Cost Optimisation which have appeared in the March to May issues of The Slovak Spectator.
As a CEO, CFO or other member of top management try to answers these questions about your company:
1. Strategically-Managed Finances
- Do you have a clearly defined business and financial strategy?
- Do all relevant employees know about it?
- Do finances in your company support the company’s primary business?
2. Profitability and Savings
- Does your company make a profit?
- Is this profit sufficient and at least at the level of other companies in your sector?
- Did you save costs last year in ways other than by laying off staff?
3. Procurement and Management of Costs
- Do you have a clear idea of the structure of your company’s costs?
- Did you re-negotiate contracts with suppliers in the last six months and achieve better conditions? (For instance rebates, more advantageous maturity terms, or qualitative benefits?)
- Have you monitored company procurement processes and the appropriateness of the corresponding costs?
- Do you have an optimal number of suppliers for individual services or purchases?
- Have you regularly evaluated the quality of your suppliers?
4. Financial Reporting and Dash-Boarding
- Do you have the data crucial for your decision-making easily accessible, preferably in electronic form?
- Do you really use this financial reporting for your decision-making?
- Do you have accurate information about the financial status of your company?
- Do you have market information about your sales and about your competitors?
- Do you have information on the current results of your company available to you within one week after the end of the month?
5. Your Finance Department and its Position
- Is your finance department an integral part of the company or is it somehow separate from the rest of the company?
If you answered NO to more than 2 questions or you just have the impression that something
is not in the best possible shape in your company, we recommend that you focus on improving
your company’s financial operations with help from professionals in corporate finance from Spiralis. Please do not hesitate to contact us. You will achieve long-term benefits and a competitive advantage.
The difference between a well-tuned and poorly-established finance system in a company shows up in several ways:
• significant savings – up to 20 percent of total costs and investments;
• well-functioning processes and more effective work systems – saving hidden costs;
• profitability – a professional set-up of financial management can double the level of profit;
• competitiveness – well-tuned financial processes can signifficantly support your company against competitors.
Effective financial management is not a universal remedy for every illness that a company may suffer, but having strong financial management will help to support the accomplishment of your company’s business strategy and long-term and short-term goals.
As a professional consulting partner, SPIRALIS can assist your company in:
• Corporate Finance Management (in-house and outsourced)
• Procurement and Purchasing
• Cost Management
• Reporting and Dash-Boarding
• Financial Effectiveness
By Marek Fajčík, Spiralis s.r.o., www.spiralis.sk
7. Jun 2010 at 0:00