Financial Strategy and Management
"Finance without strategy is just numbers but strategy without finance is just dreaming."
— Emmanuel Faber, CEO of Danone
Too many business people think that having an accountant equates to a financial strategy. It doesn’t! Accounting and finance are completely different functions, requiring different skill sets and mindsets.
Most accountants are very conservative in their advice around issues of finance, and would arguably leave money on the table compared to an experienced corporate finance person.
A financial strategy is designed to achieve the maximum balance between several competing and important questions.
- Will the company have the money to execute on it’s strategic plan for the forseeable future?
- If not, what is the plan to raise it?
- Will it be debt, equity or a combination?
- Which is best for the company or owners at this time?
- Where are the best opportunities for the company to invest?
By asking these questions we often unlock “hidden” cash from the balance sheet or improve cash flow without a change in the company’s risk profile.
Financial Strategy Should be Deliberate
Accounting breaks down into two major fields, Financial/Reporting/Public Accounting which is concerned with the company’s financial performance in some past period. The purpose is often either taxation or compliance, however in many companies these reports comprise the sum total of all accounting produced.
More sophisticated managers supplement reporting with “management” or “cost” accounting to help make good decisions about the business. Management accounting requires that you have a good understanding of the business at a systems level, how it operates as it focuses on looking at processes. If you don’t understand how your costs behave and you haven’t got the financial and operational controls in place to ensure your company is firing on all cylinders, Brad can help you implement them.
Hire Brad for Financial Strategy and Management