This video and article are a part a six-part series, “One Question with … Rehmann Advisors on Discovering Your Organization’s Great Advantage.” This series features a select group of Rehmann advisors who unpack six questions on timely issues, as well as reveals practical advice for today’s ever-evolving economic and business landscape. Learn more about this series and Rehmann’s solution offerings here.
Running an organization often is a practice of controlled chaos, and of course it’s important to work on having as much control as possible in such a situation. One way to help control the chaos? Having reliable information at your fingertips.
We sat down with Chris Sing, who leads Rehmann’s emerging companies practice group, to explore just how critical it is for an organization to have access to real-time financial data – data that helps you gain control and have the knowledge and flexibility needed to make wise decisions that benefit your organization. The question she answers: What are the top three real-time financial data points leaders should understand and know?
The critical data points:
Cash position. Cash is king, but you don’t need a lot of cash to show your organization is doing well. Most important is knowing with clarity how your cash works for you. With today’s technology, there is no reason not to have the following information available to you at any time:
- Access to your organization’s financial activity, including current cash position as well as cashflow and both short-term and longer-term expenses
- Ways to access additional funding if needed
Debt obligations. Who do you owe money to and when do you owe it? What happens if it is not paid on time – would your organization face consequences? It is important to know payment timing and cycles, flexibility for payments, and plans to make sure you are staying current.
Revenue tracking. Most organizations run their books monthly. Be sure you understand how much revenue you must collect to pay your expenses. Track through the month, either daily or weekly, to ensure you are on track to pay your expenses. If you need to take corrective action, make a plan. You cannot wait until the month closes to look at your revenue; if you wait until the end of the month, it is just too late.
Addressing these data points will assist in creating and executing your organization’s strategy. You may want to reach out to a trusted third-party vendor for help – if you are struggling to stay on top of your cashflow, expenses, debt, and what you need to make monthly, connecting with an outsourced partner will give you access to tools, resources, and credible guidance. You can control the chaos and make better decisions to grow – and sustain – the success of your organization.
