How To Develop A Powerhouse Financial Strategy

Creating a financial strategy is an essential part of any business’s success. A financial strategy often forms part of a much larger business plan and sets out how your business plans to finance its overall operations in order to meet its objectives now and in the future. It also helps to establish and communicate your business’s operating costs to company executives and investors.

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If your business is new, your financial strategy will be based purely on projections, whereas if your business is up and running, it will be based on your past financials and include projections. If you want to develop a powerhouse financial strategy, you need to follow these fundamental accounting tips:

  1. Establish operating costs

To establish your operating costs, you need to look at all your business costs including office space costs, data center costs, employee salaries, expenses to vendors and suppliers, office supplies and any other necessary expenses needed to keep your business operating.

  1. Consider your cash flow

Your costs and balance sheet may look great on paper, but if your cash is not managed properly, your business can quickly start to fail. Part of your financial strategy needs to identify how your money will be used in your business as well as an amount that needs to be placed in reserve to ensure you are never caught short and always have capital in your business.

  1. Document purchases

Your financial strategy should document all purchases made throughout your business – particularly large expenses. There should be detailed guidelines around these large purchases, documenting whether they will be made with cash or credit. Suppliers’ terms need to also be considered when documenting purchases. If a supplier is prepared to wait 45 days, your business should note this and only make payment at the end of this period. In addition, you should document if approval is needed by senior management for any large amounts.

  1. Detail the collections plan

Your financial strategy should include a detailed collections plan. If your business is not properly managing the money it’s owed it can have serious consequences for the financial health of your business. Your collections plan should specify who is responsible for following up on overdue payments or turning them over to outside collections agencies. It should also indicate if deposits are required for new customers, prior to the delivery of goods or services.

  1. Quantifying investments

Your financial strategy should also broadly outline your planned investments and whether these will be placed in high-risk or low-risk portfolios. Your financial strategy should also outline the necessary steps to be taken if investments have to be liquidated to cover business costs.

  1. Specify your accounting services

Online accounting services have a huge role to play in ensuring a business performs at its optimum. Your financial strategy should outline the bookkeeping, payroll, billing and other software applications that are needed to run your business efficiently. Detailing your needed accounting services in your financial strategy will result in significant cost and time-saving advantages including:

  • Improved productivity: By using online accounting services, you are able to free up more staff to focus on key areas of the business, secure in the knowledge your accounting basics are being completely managed in a skilled, professional manner
  • Improved efficiency: Online accounting services give you access to the most sophisticated software available, ensuring all your services are being performed in real-time.
  • Reduced costs: One of the biggest benefits of online accounting services is the cost-savings it brings. These services usually cost a fraction of the cost of having your own on-site financial team and running your own software on an in-house server, which requires updates and upgrades.  


Companies like Easier Accounting are already bringing the benefits of online accounting to financial professionals and business owners by offering them these huge cost and time-saving advantages.

For more information about the top trends affecting the business and finance world in 2017, download our guide:



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