Financial systems for small businesses: The hidden benefit no one talks about

Recently, one of my clients was reflecting the impact of the financial systems we had set up in her company in our review meeting. She mentioned to me that now they are able to focus more on decision making, not worry about chasing payments and clearing invoices, the team members know very clearly of their roles and they were also able to pick out the low profit making service they were offering and make necessary changes. Even better? They realised that their business has become VAT complaint.

They are some massive positive impacts not only for the business. But the process has not been an easy one for sure. It meant the business owner spending hours providing all the information to me to help build systems, follow up with team members ensuring they were on track, essentially lead a massive change in a 10 year old mid-size company right in the middle of its growth phase. 

Change is never easy.

So why do it?

I can list a number of benefits of having financial systems in your business:

• Tracking cash flow

• Regular reporting 

• Arrive at profit and losses

• Take control of expenses

• Financial decision making

• Scale and grow

• Delegate

And so on..

But the real benefit lies in the mental space that gets freed up for the business owner.

So, what does it actually mean to the business owner?

• It means, not being constantly anxious about finances

• It means not having to guess every money move

• It means spending on growth guilt free

• It means building a sustainable business backed by data-backed decisions

• It means making confident decisions

• It means being rest assured on your team (if you have delegated)

• It means peace of mind! 

• And best of all, It means focusing on things you actually want to focus!

If you have the right systems in place, you can actually let finances hat go and where the hats you actually enjoy wearing!

And systems don’t always have a cost to a bomb. Systems are not only for big businesses. 

It is for all businesses where the business owner simply wants to have the choice to do what they value.

I urge you to take a moment to reflect on why you actually started this business…

Written by

Mrudula Muralidharan

Founder and Finance Coach

Million Goals