Tough FDs key to survival in 2011

News Article - 18 January 2011
Category: Business

Finance teams will be instrumental if businesses are to succeed in 2011, according to forecasting business Numeritas. Financial models produced by the company suggest sound judgement will be required to cope with a range of financial pressures facing firms this year.

Toxic customers, a one per cent rise in employers' national insurance and client insolvency are three issues businesses may struggle with. Poor strategic decisions, such as taking on new staff rather than making better use of existing ones, will also drive down profits.

Stephen Aldridge, managing director of Numeritas, commented, "A company's finance team will very much control the destiny of firms in 2011 - if they're tough with customers and get bills settled quickly, then they'll do more than just boost vital working capital."

Mr Aldridge also warned firms to rein in sales teams to prevent risky low-priced sales to businesses that may be unable to pay.

"The finance director needs to be tough with his company's own sales team - reliable customers paying profitable prices with good payment terms are to be welcomed."

With markets also affected by the VAT rise and the Government's austerity measures, finance directors (FDs) face considerable challenges in 2011 and must ensure decisions are made on the back of sound financial judgement.

However, FDs often struggle with a lack of meaningful data due to infrastructure limitations. Yet without up-to-date information it can be hard for them to prioritise tasks and make decisions in the best financial interest of the company.

Access financial software can help FDs make the decisions necessary to help their firm survive difficult economic conditions in 2011: Budgeting software supports a required sign-off to be obtained for both resources and budgets, leaving behind a full audit trail that can help finance teams monitor historical financial performance and use this to predict future trends.

For more information on how Access financial software can help finance teams make the right decisions in 2011 to protect profitability, please call us today on 0845 345 3300.

Article keywords: Finance director, FD, Numeritas, financial models, employers’ national insurance, client insolvency, toxic customers, Stephen Aldridge, VAT rate rise, Government austerity measures, Access financial software, budgeting software, historical financial performance, financial trends

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