Reviewing and reassessing your company's financial strategy

Graphic design image of a calendar and two though bubbles one showing the ups and down of a line and the other showing a steady increase of a bar graph with the words, "A strong handle on financial information helps your business do everything from plan for the future to see out loans and financing." - TAB Bank

by Curt Queyrouze, President

A financial strategy is a core component of a well-managed business that offers valuable transparency for owners, decision-makers and other top-level stakeholders. When you created the initial business plan for your company, it likely included several important and detailed financial considerations. This original strategy is critical as an enterprise begins operations and can continue to provide value for some time to come, but an occasional review and potential update of a financial strategy is just as necessary. Let's look at how you can keep your company's financial plan current and effective.

Tips for updating your company's financial plan

The initial financial strategy you developed as part of your overall business plan contains plenty of useful information in a widely understood and easily accessible format. When it comes to modernizing this document, don't feel as though you have to reinvent the wheel. Simply review the plan and look for areas where details are outdated or no longer accurate. Perhaps your company has grown significantly during its first few years in operation, and revenue and profit projections aren't representative of your company's current reality. Draw on your actual revenue and profit numbers to create more accurate estimates for the future. When it comes time to make an important financial decision, you'll likely be glad you did.

As long as your company has a good handle on its core business activities, it's not an especially difficult process to plug updated numbers into a financial plan or create projections for the future based on them. Simply set aside some time dedicated to this review and reassessment process, then make sure you or your staff follow through.

Small-business consultants Cayenne Consulting suggested a quarterly schedule for factual updates tied to numbers, financial figures and industry and market information. When you prioritize regular updates, you make sure your business plan stays relevant and accurate. To make sure everything stays consistent - especially important considering certain numbers will need to change every quarter and others may only have to be updated every few years - consider maintaining a spreadsheet that tracks changes. This allows you, or the employee in charge of updating the financial and business plans, to ensure accuracy in reporting. That's especially important when it comes time to share your current financial details with a potential investor or financial institution.

Strategies for boosting new business activities

Growing companies as well as those in a steady, stable position will likely consider options for growth and development as time goes on. This often means seeking some form of loan or financing from a trusted provider, and this is an area where accurate and current financial projections are key. Lenders will want to review your recent business activities to help determine specifics and to understand the feasibility of moving forward. When your business can quickly share the relevant data, it starts off the request for a loan or financing on the right foot and makes the process easier for the provider.

With certain lending options, such as accounts receivable financing, the ability to share accurate financial information is important for both the initial discussions with a potential lending partner and for the specific amounts provided during the course of the agreement. With individual unpaid invoices acting as the backbone of the financing, it's important to have the capacity to discuss accounts receivable activity both in general and very specific terms. While A/R financing provides a wide range of benefits, from the ability to use the invoices as collateral for the loan and its flexible long-term nature, companies need to have details of their financial information on hand and be ready to discuss them.

Are you looking for a way to grow your business, address an operational need or deal with an unforeseeable emergency? A/R financing is a flexible, responsive lending option that leverages your existing unpaid invoices. To learn more about A/R financing and why partnering with TAB Bank as a provider can help your company, get in touch with us today.

About the Author

Curt Queyrouze

Prior to joining TAB Bank, Mr. Queyrouze amassed over 30 years of commercial finance and commercial banking experience. His career has included various credit, sales, and portfolio management positions in asset-based lending, factoring, corporate banking, oil and gas finance, real estate lending, financial institutions, healthcare finance, and middle marketing lending. Previous roles include Senior Vice President/Director of Loss Mitigation for Whitney Bank where he managed the resolution of a multi-billion dollar problem loan portfolio. He has also previously served as Division Credit Executive for PNC Business Credit and as Chief Operating Officer of The Receivable Exchange, playing a critical role in the launch of this internet-based, factoring auction platform.

Mr. Queyrouze holds a Bachelor of Science degree in Accounting from Louisiana State University. He has also taught many classes on financial analysis, cash flow analysis, loan structuring, and workout strategies. He has served in many volunteer leadership positions for non-profit organizations advocating arts and humanities and disease awareness and prevention. As President, Mr. Queyrouze oversees all strategic, financial, credit, and operational functions of the bank.

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