Financial literacy is imperative for all business owners and executives, especially as they navigate a changing and uncertain environment. In honor of Financial Literacy Month, here are a few of our top tips for increasing your financial literacy in your company:

  1. Study your cash flow cycles. Observe and understand the inflows and outflows of cash in your business each month. This is the financial lifeblood of your company.

  2. Establish reliable accounting systems so you know the numbers you’re looking at are accurate. It’s 100% necessary for your business’ success. Rely on accounting professionals to set it up for you, but challenge yourself to understand how the systems work.

  3. Familiarize yourself with a rolling forecast. It projects your future financial scenario based on historical data and what you are predicting about future pipeline and costs. It's one of the most powerful financial tools you can have. A Fractional CFO can build it for you and provide strategic insights.

  4. Find a CFO, Fractional or full-time, who helps you make sense of your business from a numbers perspective, is educational in their approach, and serves as a strategic advisor to you and your leadership team. Ask plenty of questions.

  5. Invest in a modern data visualization solution. Excel can be overwhelming, clunky, and fragile. There are more robust solutions out there now. Ask us for a recommendation!

Reach out to us at ascentcfo.com/contact to learn more.

About the Author:

Dan DeGolier is the founder of Ascent CFO Solutions and a Fractional CFO with nearly 30 years of experience. He is passionate about working alongside leaders of companies to help them “upward” to their highest potential. Read more