Prioritise fiscal management
Description
A successful business runs with the aim of making a profit. There are many types of companies, ranging from sole proprietorships to large multinationals. Yet, the aim is still the same – making a profit. The greatest leaders in business understand how a company makes money. This is not about knowing the methods of recording transaction details for financial reporting, it’s financial acumen.
Summary
Leaders must be able to make sound decisions under pressure. They can’t be carried off by emotion or panic. They need to ground themselves in facts and then make the best decision possible. They need to be plugged in to the finances, or put another way, they need financial acumen.
This involves understanding the monetary systems that underpin business matters, as well as having an ability to manage an organization based on sound financial principles. It’s a skill that can be learned, and it’s crucial for the health of a business.
