Financial Awareness Of Business Managers

Forest vision

Many business owners see that finance is always a specific number, which is actually accounting thinking, not managers' thinking.

As a manager, when looking at financial data, he can't just see the logical relationship between the data structure or number. The key is to see the significance behind this figure.

For example, what does an enterprise have 1 billion of its total assets or 100 million of its total assets? What is the difference between them? Therefore, it is important to analyze the financial data in a holistic perspective.

Managers of enterprises need to have a general understanding of the company's overall business status: how much is the net profit of an enterprise? How large is the asset scale of an enterprise? What is the turnover of each stage? What is the demand for cash in operation? What is the fixed cost per month? How much is the change? What is the basis of all these considerations?

Through the analysis of these basic data, we will have a comprehensive thinking and grasp of the problems that enterprises may or have already appeared.

Inspiration: the forest like vision is very important. It requires us to see the problem and not to point, not only to find one or two points of the problem, but also to scan the whole operation of the enterprise and find all the problems hidden in it.

Numbers are related, and a manager with a financial concept will find the problem behind the figures faster.

The emergence of any problem is not a single occurrence, it will implicate the occurrence of other problems. This is the concept of financial analysis.

The analysis of correlation degree is the key to the concept of financial analysis of enterprise managers.

Therefore, when we look at all kinds of reports, we should use the concept of finance to look at problems, and at the same time, we should make an analysis of correlation.

This requires us to be very sensitive when we look at problems, and immediately think of other aspects related to this project through a change in numbers.

Enlightenment: the establishment of a manager's financial concept is actually to find a breakthrough point to solve other problems related to a problem.

The value orientation of enterprises must put "numbers" in the front.

What is the number? It is the result! It is the standard! When we talk about one thing, we can all understand it, but when it comes to numbers, some people will not respond.

Numbers and things should be linked together. The correlation between them is guidance and the key to our financial management.

Therefore, managers' value management orientation needs to be changed again.

This change first requires us to have the concept of numbers, and the standard of measurement is numbers. This requires the communication between departments of enterprises to talk about numbers, and responsibility for the results should be the work orientation of all cadres.

The presentation of figures is the result, which is just what many managers do not want to face.

Inspiration: when making decisions, entrepreneurs should not only judge right and wrong, but should judge the result and always connect numbers and things to measure.

What is the thinking of systemic thinking? A manager with financial concept should think about it from top to bottom when considering problems.

For example, when it comes to the core issue, what is the rate of return of shareholders? It is necessary to find out what factors it will be affected and what companies should do to better achieve them. All these require managers to have a clear and systematic way of thinking.

Management enterprises must be good at making use of the force of financial indicators, breaking down the financial indicators of the entire enterprise into various departments' responsibility indicators, and then decomposing them into various posts.

Enlightenment: a financial concept entrepreneur can more quickly make the enterprise maintain steady development; a general manager with a financial concept can make it easier for enterprises to maintain profits; a leader who uses financial affairs to get through business management can make enterprises bigger and stronger at the same time.