Join Jim Stice for an in-depth discussion in this video Next steps, part of Finance for Non-Financial Managers.
- Well, we made it. We've been introduced to some of the basics of accounting and finance, and we've lived to tell about it. So, what should you do next? First, appreciate that numbers are tools. They are not to be feared. They are to be used. Numbers can assist you in becoming a better manager in whatever area of the business you function. You can use numbers to your advantage in supply chain, human resources, strategy, or wherever you find yourself in a business. Second, have the courage to use numbers in your job.
There are ways to apply the concepts we've talked about. You just need to think about the appropriate application. Third, don't think too big. Moderation in all things. Identify a couple of areas where numbers might help you in monitoring progress, evaluating performance, or assessing productivity, and start using numbers to assist you. Fourth, you might want to know more. You can get an excellent overview of the key concepts in finance in our Lynda.com course "Corporate Finance Fundamentals." Maybe you feel like you're operating your business blind.
Your profitability seems low, but you can't figure out why. Then you need some exposure to some simple techniques of financial analysis. Again, I point you to our Lynda.com course "Financial Ratio Analysis." These and other courses might help you should you want to know more. At the end of the day, please remember that it's always about people. Numbers can help us, but numbers aren't the answer. People are the answer. Never forget, regardless of what we do for a living, we are in the people business.
- Interpret financial reports and make decisions based on available data
- Manage inventory and receivables
- Create an accurate budget
- Cost a product or service
- Analyze customers
- Understand your income taxes
- Communicate your contribution to the bottom line