WHY A HEALTHY DOSE OF FINANCIAL LITERACY IS KEY TO BUSINESS SUCCESS.
Understanding how your actions affect the bottom line of the business you own (or work for) is key to long-term success.
You may think that accounting and finance is best left up to your accountant or finance manager. Or that as long as you are selling your goods/services for more than they cost then you are doing ok.
Perhaps in your day-to-day activities you make business decisions based on gut and past experience. You send your invoices and receipts off to your accountant or finance department and periodically you get a snap shot of the performance of the business through a set of financial statements or management accounts. However, the preparation of the financial statements is like a black box, you are aware of what information is fed into the process and you have a rough understanding of the set of statements that come out of the process.
As long as the results are roughly what you expect you don’t question them, and if the results are not what you expect you are not quite sure where to begin to pinpoint the problem areas.
You may find that the review of your financial results, or management accounts, is a fire fighting process where you identify areas of your business that are burning through profits and then you attempt to put out the fires.
What if, rather than the review of your financial results being a fire fighting process, you reduce the likelihood of, or even completely prevent, those profit burn situations from arising.
I am not suggesting that everyone needs to develop the full knowledge of an accountant. However, if you can improve the financial literacy of those working in your business you will empower them to make better business decisions on a day-to-day basis.
Anyone who has an impact on your bottom line should understand how their actions impact on profits. It’s that simple.
Sales teams. New recruits. Payroll teams. Human resources. Managers. Directors. EXCO. Business Owners.
From a salesperson who needs to understand how their decision to offer a discount affects the bottom line, a manager who needs to better understand their budget, to a board of directors who need to refresh their accounting knowledge, and everyone in between.
So where do you begin to improve the financial literacy of people working in your business?
Employee time is a valuable resource, one not to be wasted on weeks of training. But investing in your employees is key to success. It’s a tough balancing act.
Balancing these two factors Root2Growth offers a 1 day Finance for Non-Finance Managers workshop. Our course will help attendees develop an accounting mindset, gain the confidence to analyse how a business has performed, and understand how to set and achieve budgets.
Through our interactive, visual approach we apply the highly effective learning method of practice testing. We have moved away from the typical textbook and lecture approach and made our workshops fun and practical. Our client testimonials reflect the positives results of our unique method. Take a look at our website for more information www.Root2Growth.co.uk
Empower your employees with the knowledge to understand how their actions impact the financial results. A healthy dose of financial literacy is key to business success. So, bottoms up!