How Financial Systems Help Business Owners Save Time, improve cash flow and Make Better Decisions

Let’s start with a question – Why did you start this business?

Whatever your answer maybe, I am sure it is not “to answer endless emails” or “constantly fret about how much money is left or not left in the back account” or “struggle to learn and understand cash flow statement and revenue”.

Because that is not what you imagined yourself doing as a business owner for sure. 

We also cannot deny the fact that all of the above is a part of running your own business and whether you like it or not, you have got to deal with it. 

Well, this article is not here to make you feel horrible about your situation, it is here to spark a thought. Because there is one thing that you can definitely do to make your life easier and give you back all that time you want to do things that actually matter to you.

Systems.

Systems are simply series of steps that flow, with the lowest level of human intervention. 

It is not new that you can choose to build systems for any aspect of business you want to, now that there are a number of softwares and AI tools this can simply be to categorise emails, summarise meetings, schedule posts. 

But there is one aspect people often do not consider, financial systems. Small businesses think it is not for their level of operations as they are small; mid size businesses perceive it to be an expensive affair; big businesses do not prioritise building financial systems for their already complex level of operations.

So, what do I mean by financial systems? Let’s break it down:

For a small business it would mean:

• Understanding some business finance terminologies

• Having a system to capture cash outflows and inflows regularly

• Having a system to divide monthly profits

• Creating financial cushioning and planning for future growth

  
  

For mid size businesses it would mean:

• Understanding some financial reporting terminologies 

• Setting up a software suitable for the level and scale

• Setting up a flow to track all the cash movements and business operations

• Create a system of reporting

• Aid in delegating any repetitive financial tasks

  
  

For large businesses it would mean:

• Understanding business reports

• Developing a nuanced financial software

• Training and setting up a finance team

• Understanding management accounting and decision making 

  
  

These steps may look simple but can make a huge difference:

1. Removing the anxiety of cash balance left in your business account, 

2. Making your business more resilient, 

3. Preparing your business for future growth, 

4. Helping you make those important timely business decisions, 

5. Saving pounds otherwise lost due to unidentified leaks, 

6. Aiding in utilising money earned more efficiently to grow your business, 

7. Removing the guilt in spending money on essentials, 

8. Allowing you to focus on more important things as a business owner/CEO. 

   
   

Most importantly give you the peace of mind that one of the most important resources are utilised efficiently and that every pound is tracked, and give you back time to do more important things. 

How can you do it? Take the first step by investing some time to understand your business’s current financial systems, leaks, gaps, loose ends, lack of information and your struggles. 

Need help and guidance?

We have a range of FREE resources just click the link below.

Ready to bring in some small impactful changes into your business? Book a free call to arrange some 121 financial coaching.

Written by

Mrudula Muralidharan

Finance Coach and Founder

Million Goals