Get the business intel you need. This is the fifth article in the series A CEO’s Guide to a Healthy Business.
With today’s technology, it’s never been easier to access information. Open up a browser, type in a topic, and you get an instant list of potential sources to click and learn more. It’s a wonder and a tremendous help! We look up anything and everything, including information that used to be unavailable to the public without a gatekeeper.
Think about it: the last time you experienced some sort of physical ache or pain or symptom, you probably turned to the internet before you called your doctor. Best case scenario is that the knowledge you gained online helps you reach out to the right specialist who can give you a professional examination.
But some health troubles aren’t obvious. They hide, undetected, until our next appointment. Which is exactly why it’s essential to have a regular health screening. You need the intel to ensure your business is healthy.
When it comes to personal health, we all know the importance of annual physical exams to detect any underlying health problems before they become serious.
Similarly, regular financial exams are like routine check-ups for your business. They provide you with essential insights into the financial well-being of your business and help you detect any potential financial issues before they become major problems.
Let’s review how you can access and apply business intelligence so your business can maintain its health and vitality.
ACCESSING BUSINESS INTELLIGENCE
For your business to grow healthy and strong, you need access to financial reports as well as the ability to read them. These reports contain the business intelligence you need to make sound business decisions. A recent article in Forbes highlights the power to be gained from collecting business intelligence:
“Properly applied business intelligence creates the chance to gain unmatched insight into — and control over — the information driving all areas of business.”
Let’s start with accessing the information. This is akin to knowing what physical ailments to enter into the search engine. You must first know how to get the right data from the right reports.
A company without access to proper financial reports is like being sick without internet access: you don’t have access to the business intelligence you need to assess the situation.
You need access to financial reports that tell you where you’ve been, where you are now, and where you want to be in the future. Without the ability to define your situation, you have no idea where to turn next. Business intelligence is essential for understanding what’s contributing to your current health status.
Officeheads knows the information business leaders need so they can make wise decisions to improve business health. We partner with CEOs and business leaders to understand where the business needs help to thrive; then we design the right report package, distributed on a regular basis, making it easy to regularly ascertain business health status.
PUTTING BUSINESS INTELLIGENCE TO WORK
With your financial reports—your business intelligence—in hand, you are ready to dig into the data. Knowing what to look for is key!
Think of it this way: physicians are trained professionals with expertise in reading x-rays and lab reports to determine the best course of action for your physical health. Likewise, you need to know how to read your financial reports to connect the dots for your business’s health.
Officeheads makes it a priority to train our clients in reading their data, using our proven methodology, which includes reviews of your:
- P&Ls (needed monthly and quarterly to understand cash flow, profitability, and KPIs that make sense)
- Balance sheet (needed monthly to understand the current financial health of a business as it relates to assets, liabilities, and equity).
- A/P and A/R reports (needed several times per month to make decisions on which bills to pay and who to contact to collect overdue invoices)
By analyzing your financial statements, you can identify areas that need improvement, such as reducing expenses, increasing revenue, or improving cash flow. This information helps you make informed decisions and develop strategies to improve your business’s overall financial health.
In addition, reviewing financial reports regularly helps you stay on top of your business’s financial performance and make informed decisions that affect your bottom line. As a CEO, it’s essential to know the financial health of your business, such as the amount of cash on hand, outstanding debts, and revenue trends. This information helps you make informed decisions about investments, expansion, and strategic planning for the future.
BUSINESS INTELLIGENCE FOR OPTIMUM BUSINESS HEALTH
Just like how we need to maintain a healthy lifestyle to avoid health issues, businesses need to maintain a healthy financial lifestyle to avoid financial issues.
Regular financial check-ups can help you detect financial issues early and avoid more significant problems down the road. By gaining business intelligence through financial reports, you can keep your business healthy and thriving. And with regular analysis of your financial statements, you can identify potential issues, make informed decisions, and develop strategies to improve your business’s financial health.
As you know, CEOs must make business intelligence a priority to stay in top financial health. Do you need support to make that happen? Officeheads is ready! We come alongside CEOs and business owners to make sure your entire company is in tip-top shape, using our signature 5-gear financial management approach. Get in touch with us today to see how the team at Officeheads can lead your company into a healthy 2023 and beyond!