Financial Awareness Of Business Managers

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.

Enterprise

We should have a general understanding of the company's overall business status: how much is the net profit of an enterprise? How large is the assets 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? What is the variable cost? The basis of these considerations is shown in the financial performance of the data of the enterprise.

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.