How to optimize your business management?

Managing a business is a stressful and complex activity. You must regularly monitor your company's financial status and its daily activity. You must be able to decipher the balance sheet or the income statement to understand its financial health; know how to identify the specialists (banker, management center...) who will support you in its development; manage your cash flow when danger threatens...

To ensure the growth of your company, today and tomorrow, you must know how to play on many boards: here is a presentation of the 3 main tips that will allow you to successfully optimize the management of your company.

1- Establish a forecast to set objectives
Establishing a forecast makes it possible to quantify several working hypotheses. You will then be able to, with full knowledge of the facts, make the decisions to develop your business that are necessary, in view of the objectives to be achieved and the resources required for their achievement. The primary interest of projected accounts is to allow you to set objectives, in terms of turnover, margin and expenses in particular. Thus, you will then be able to constantly compare your achievements with the forecasts, during the year, using your monthly dashboard, and at the end of the year when you have your final accounts.

2- Set up a dashboard to regularly monitor activity.
The dashboard allows you to closely monitor the evolution of your activity throughout the year, and to have, within a short period, each month, an estimate of the ""score"" achieved so far by your company, allowing you to know all the elements necessary for effective decision-making. It is based on a systematic and periodic information feedback procedure, which allows you to better understand the results and evolution of your company. It also proves to be an excellent motivational tool for your employees, and more particularly for those whom you have invested with responsibilities in the company, and for all those whose remuneration is partly a function of the results obtained.

3- Get out of intermediate situations to take stock
Intermediate accounting situations (whether balance sheet, income statement or intermediate management balances) make it possible to know the real accounting situation of your company during the year, and therefore to know precisely where you are. These intermediate situations serve both to precisely inform the business manager to allow decision-making with full knowledge of the facts; to anticipate ""deviations"" of all kinds as far in advance as possible; to control and adjust monthly dashboards, quick situations and result estimates; to prepare the year-end balance sheet and the forecast for the following year.

Conclusion:
You may feel that your instinctive knowledge of your activity is sufficient. However, experience shows that management tools, forecasting and dashboards, in particular, significantly improve the reactivity of the decision-maker. Do not hesitate to contact your accountant to diagnose the management tools that could help you refine the management of your business, and thus put all the chances on your side to achieve a score that meets your highest hopes.

Philippe Montant General Manager ExeKutive.biz