Tips for Finance Leaders Entering 2021

Dear Financial Leaders,

2020 left in its wake uncertainty, rapid changes and economic shock. But to the financial leaders entering 2021 anew, 2020 also provided you with insights into potential improvements, what priorities should be evaluated, and why planning/analytics are essential to the future of your business. Here are 7 Key Words to keep with you in 2021:

1. Rebuild- Start rebuilding your revenue. This could be a change in offerings, products or markets. Leave no stone unturned and be willing to get creative when looking for areas to expand.

2. Flexibility- Being agile when responding to the needs of your company is essential to the success of your organization. You must keep pace with rapid changes in your industry, with competitors, economically and with the changing needs of your customer base. The company to respond effectively the fastest sees more benefit than the company that must wait for change.

3. Analytics- Now is the time to invest in your data analytics and automation. Data analytics are necessary to anticipate needs, mitigate risk, improve processes and make the best business decisions. Properly utilizing the data you have can give you the competitive advantage you need going into 2021.

4. Communication- Internal communication must be simplified across departments and decision makers. There should be a consistent, connected source of truth to provide analysis and insights. Spreadsheets thrown throughout the company are prone to error, difficult to find, and inefficient.

5. Technology- Utilize existing and emerging technologies. Do your research, and discover a new technology that fits your company’s needs to move toward a reinvigorated business model. Find a technology that is flexible and can grow with your company's changing needs.

6. Modeling- Managing risk and plan for recovery by learning more about risk mitigation, scenario planning and modeling.

7. Cash- Understand your company's cash flow. Cashflow forecasting and learning more about your liquidity options can help you better prepare for future changes. Make greater use of your working capital and private debt as an alternative source of bank financing. Use your planning tools to create a plan.

With these 7 topics in mind 2021, you and your finance team will enjoy a reinvigorated outlook on success.

References:

https://www.canva.com/design/DADk-EtSxKw/G1Cd3ydQnGkAJhn3eA5bOQ/view?utm_content=DADk-EtSxKw&utm_campaign=designshare&utm_medium=link&utm_source=sharebutton