Updated: Jan 23, 2021
As companies around the world are facing major financial pains due to the impact of the 2020 COVID pandemic, decision makers have to think through how best to approach their enterprise's financial planning strategy.
Moreover, it can be extremely challenging - especially for companies that struggle with data systems that are not unified and in-house finance teams that may not have the experience to understand how to strategically and positively pivot operations during a crisis.
However, having a solid financial plan is key for rapid enterprise growth. Incorporating disaster and emergency planning is also important, but not easily done. Many companies will rely on strategic solution providers to help create financial planning systems and strategies to prepare for the unexpected - something that has helped many companies lessen the negative financial impact on their organization.
Financial planning entails the discovery of essential details to help you create the best strategy for company growth. Every company, especially enterprises, have to consider what to spend, how to spend it, and how much can be spent according to your projected and received cash flows.
Below, to assist with your financial planning preparedness, we've included a few key considerations to examine as your companies prepares their strategic financial initiatives.
Map It Out
Companies have to first map out their projected estimated costs to set the bar for their overall plan. Not having enough cash or a plan to acquire cash can stunt growth and force goal changes that can negatively impact forecasting.
Determine Your Funding Source(s)
Creating a plan to acquire funding is also essential in enterprise financial planning. Questions such as these will need to be asked: "Will new revenue streams be created this year or will new investors contribute to the company's strategic plan?", and, "How should we report back in a way that shows both our board and investors a clear understanding how their funds have positively impacted the company and they will profit as a result?" Having a clear system in place to showcase investment impact is a key consideration when creating an enterprise financial plan.
Use Expert Financial Strategists
Creating an enterprise financial plan is the foundation for centralized corporate financial controls. If in-house finance teams do not properly understand how to integrate systems and showcase accurate, real-time data, this will negatively impact your bottom-line. Creating plans based off of inaccurate data or data that isn't real-time will create strains on your financial projections and ability to scale appropriately.
Disasters Can And Will Happen
Every commercial enterprise has to face unexpected expenses, disaster situations, and occasions over which they have no control. Emergency cash is something else to ensure is a part of your enterprise financial plan. One of the roles of monetary planning is to ensure there are adequate reserves for such occasions and they are always replenished.
Get The Right Plan and Unify Your Data
Many companies struggle to put together their financial plan - especially when there are major complexities in their organization, such as multiple data systems and departments. If you're not confident in your financial data infrastructure's accuracy or just in your organization's overall ability to report and forecast appropriately during times of uncertainty, working with teams that know finance and technology is essential.
Stella Financial Solutions is an enterprise financial planning-as-a-service company that provides a customized data unification platform to help businesses see their business through the financials. Offering managed and advisory services as well, Stella offers a complete financial planning solution for enterprises.
Hear about how Stella has helped other corporations and non-profits unify their financial data and create opportunities for growth.