A company's financial health says a lot about its ability to invest in growth or even pay creditors, so keeping financial health in the positive should be a priority for CFO.

For a company to perform well, the financial organization is extremely necessary, it needs to be simple and practically perfect, delivering an overview of how the company's health is so that it can make investment decisions. But after all, are there any tips or good practices that improve the financial health of companies?

This question arises when companies realize that they are suffering from various obstacles such as the bureaucracy of banking services – generating a lot of delay for even simpler actions – and the lack of support from bank managers. And dealing alone with the volume of information and documentation required is not simple for entrepreneurs.

In practice, this financial health will only be seen as positive when there is a balance between the timing of payments that need to be made with the volume of revenue raised. And to help you, we've prepared a list of 3 ways to improve your company's financial health . Check out!

3 ways to improve your company's financial health

Following this list, you will be able to apply the best actions to ensure positive numbers in the financial area of ​​your operation and focus on the company's growth .

1. Use technologies that simplify financial processes

There is a common scenario that happens in small and medium-sized businesses . Generally, in order to seek the lowest bank and financial fees, organizations use accounts from several different banks. The problem arises when managing cash flow, as it is difficult to have an overview of the operation.

After all, where was each movement performed? Is it better to put part of the receivables in one account and the other part in a second bank?

With this scenario, management software is always chosen to receive this information and carry out this control, but it does not solve the financial bureaucracy and bank negotiations that come ahead.

Therefore, as a first tip, you should look for technologies and software that simplify these and other financial processes . The ideal is to have a platform that connects with your management software and applies a layer of intelligence to deliver the best scenario for financial control.

As a differential, you can look for options that are already connected with financial institutions to use available lines of credit. So you don't have to go one by one to identify the best rates. Bureaucracy ends with a fully digital process .

2. Organize records to reduce expenses

When we talk about how to improve your company's financial health, it's clear that lowering expenses is always one of the main points that come up in discussions. But for this to happen, the most important step is to maintain a complete organization of your area records by creating a prior planning.

By developing this kind of plan, you can identify where your current strengths and weaknesses are. And using the right tools, you can compare your performance over time to find out which option is right now .

To keep track of these records, at the most basic level, you need complete financial statements to assess your level of spending. So the indication is to use balance sheets and a cash flow statement to find everything that can be adjusted in the near future.

After creating this organization that facilitates the identification of expenses, you can proceed with the following actions:

  • Set up a periodic payment plan for larger expenses;
  • Changing insurance companies, banks or financial providers to get a better rate deal;
  • Change the amount of payments for the period of the month in which you have the lowest cash flow;
  • Switch to cheaper suppliers or options for consumables.

3. Take out loans to keep cash flow positive

Maintaining the financial health of a positive company involves always having a positive balance in the account to make the planned payments. This means not acquiring debts, which happen when there are delays in payments.

If you have entered a financial crisis or simply do not have the means to continue making payments on time, a valid alternative to improve your financial health at these times is to look for loan options .

There are a wide variety of types of loans you can apply for, depending on the nature and financial status of your business. The ideal path then is to better understand your options, as they can help you identify the best alternatives, with the lowest rates, that can serve the objective you need to achieve at the moment.

Take the opportunity to get to know Sky.Simple , a platform that connects to management software, performs financial analyzes between companies and financial institutions, resulting in the best rates and agility in loans.

Now that you know the main tips on how to improve your company's financial health, follow our blog and subscribe to our newsletter to receive more news on this topic!

Written by

Sky.One Team

This content was produced by SkyOne's team of cloud and digital transformation experts.