Reporting is critical. We must have reporting – daily reporting, weekly reporting and monthly reporting.

 

Everyone in a business does better when they understand how financial success is measured.

 

Managers of a business make a lot of day-to-day decisions. They will make them more quickly and effectively if they understand the financial parameters they work under.

 

However, just as understanding finance in the managerial ranks can boost a company’s performance, so can financial intelligence among the troops.

 

Everybody in a department can make smarter decisions if they understand the numbers – how their unit is measured and the financial implications of what they do every day.

 

Much has been written about how the troops in the field need key performance indicators (KPIs) and how essential it is to report regularly up the line. This is true; but they must understand the financial logic of the KPIs or the performance goals. There would be a lot less eye-rolling and head-shaking when management imposes new KPIs! Employees would feel more involved and committed and would understand what the organisation is trying to achieve and how they themselves can affect results.

 

Financial literacy needs to become part of a company’s culture. It takes time, effort and a little monetary investment.

 

Trust will increase, turnover of staff will decrease and financial results will improve!

 

 

Source: Financial Intelligence, Berman & Knight