Various companies with an industrial business line fail mainly due to not having very good-aligned in their operations the finances. These financial strategies allow them to achieve the profitability of the company.
Currently, it is vitally important that companies have financial strategies that allow them to achieve their objectives and, therefore, that companies grow and can be competitive with other companies, providing quality services and internally, managing adequate the resources and management of finances, economics, and accounting for decision-making.
Comprehensive and general form, accompanied by all topics, allows managers to make assertive financial investment decisions. Such as decisions on how to grow, how to finance, how to create value, how to generate and increase profits.
The following are four important topics that every business person must take into account in his company; large, medium, or small.
Analysis of Balance of Income Accounts.
All the scenarios of the balance of income statements must be interpreted to be able to make decisions at the commercial, logistical, operational, and human resources levels. Understanding at what level the company is in debt if it has adequate working capital with the correct rotations at the customer level, stock, how to improve inventory turnover, is fundamental to design a solvency balance.
Financial Planning.
Another problem that insolvent or solvent credit companies relapse very frequently in terms of growing credit restrictions. We cannot allow an increase in investments, improvements in indebtedness. For that, one of the methodologies is to properly apply the projection of the income statement, balance sheets, treasury, and to be able to determine with great precision, which is our financial needs.
Investment Selection.
This point allows us to plumb the financial terms such as saying yes or no to an investment, or how to prioritize and where to start investing. It is important to know the investment selection methods.
It will allow us and ensure that the decisions that a Manager makes see if he is creating value in the company in a positive way.
Company Valuation.
What are the methods we have to value a company, advantages, and disadvantages? We are always looking to the future. We can never get rid of uncertainty. It is necessary to solve this question.
We would not be unable to decide what are the advantages of merging two companies, whether to buy or sell a company, what are the synergies I have or what is the value lever. Therefore, at the financial level, it is essential to have all these concepts very clear.
When summarizing these four topics, it is necessary to land the functions of the administration aligned to the corporate strategies. Establish a strategy that integrates the main goals and policies of an organization, and at the same time, establish a coherent sequence of actions to be carried out.