Efficient financial administration

Organising the financial administration in an efficient and current way forms one of the cornerstones of the company’s operations. Tips on how to make your financial administration more efficient by reporting are provided in this section.

Financial administration 2/2

  • REPORTING

    Preparing the accounting only to fulfil official, statutory obligations is just one perspective on financial administration. In fact, it is important for the the entrepreneur to understand the accounting and financial administration from a broader perspective – in terms of the development and leadership of the company. Organising the financial administration in an efficient and current way forms one of the cornerstones of the company’s operations. At best, financial management and leadership act as a lighthouse that helps to avoid shallow waters on the rocky path of growth.

    In order for the company to be able to produce information serving the development of the company, the entrepreneur and financial management service provider must first agree on the matters to be followed, i.e. on the key figures. These are often called key performance indicators (KPI). The KPIs are different in different sectors – for example, the invoicing rate of employees is monitored in an accounting company, while the sales figures as well as stock turnover rate or the development of the payment terms of purchases invoices are monitored in a restaurant. With these indicators, it is possible to optimise the working capital utilisation in the company and ensure sufficient cash flow, which is especially important at the beginning and during the growth phase.

  • GRAPHICAL REPORTING

    A professional financial administration partner provides the company with browser-based financial administration software that can be used everywhere and with all end terminals. A good financial administration software includes also tools suitable for financial planning and reporting. The software should include a graphic reporting possibility, rather than just numerical data. With graphs and summaries, it is easy to recognise the economic development and address possible problematic situations as soon as possible.