5 Techniques for Strong Financial Management
By: Teresa Beck, Financial Services
Strong financial management systems support good business. Financial management does this by ensuring stakeholders can understand how well an organization plans for and uses their financial resources. Let’s take a look at 5 of ASG’s best practices for financial management within an organization.
- Consistency Drives Efficiency: Maintaining consistency not only in policies, but also system function is paramount when formulating concepts of the best practices for financial management. Here at ASG, we cross-train our accounting staff for each client we manage. This helps us, as a unit, establish consistency in processing and understanding as a whole.
- Accountability Achieves Trust: Cultivating a standard of accountability demonstrates dependability and highlights achievements in how resources are used. Simple checks and balances, like separating accounts receivable duties from accounts payable, is essential in maintaining a strong financial management.
- Transparency is Key: Transparency should be practiced in every aspect of an organization, but especially in the financial side of the operation. Your organization should cultivate openness about its work and its finances, making information available to all stakeholders.
- Integrity is Paramount: An organization is nothing without its integrity, and that also includes the financial departments. Individuals must take accountability for their work, and the organization as a whole. They must operate with honesty and propriety if they wish to maintain proper customer relations, which in return will only benefit the organization.
- Financial Stewardship: Another practice that must take place in order to maintain a strong financial practice is financial upkeep. Organizations must take good care of the financial resources it has been given and ensure that they are used for the purpose intended. Establishing an annual budget and a goal for financial reserves can be the first step of this process.
Creating a thriving financial management practice takes a group effort from every aspect of an organization. Using these 5 techniques as guidelines for management, policy and practice, you can achieve strong financial operations in your organization.
Teresa Beck has worked in ASG’s accounting department for 4 years providing financial services for many of our clients. She enjoys spending time with her family, as well as spending time at the lake.