Is financing & budgeting holding your business back? Here’s a new way of thinking about it

Businesses of all shapes and sizes can benefit from improved finance and budgeting practices. Too often, companies are limited in their growth potential by a narrow-minded focus on cutting costs and spending less. However, there is another way to look at things – through the lens of investing in your business to facilitate greater growth. By taking a comprehensive and accurate view of your finances across all areas of your business operations, you can identify areas where investment will provide the greatest return. With the right systems in place, and comprehensive reports and insights into all facets of your business you can make smart decisions about where to spend your money in order to maximise value and expedite growth.

Traditionally the budgeting function has been seen as the gatekeeper of business performance and dollars. LightArc is shaking things up by providing an alternative way of thinking about finance and budgeting – one that takes into account the bigger picture and offers opportunities for businesses to invest and grow.

The premise of increased profit only being possible if costs are reduced and expenditure capped is no longer the only way of thinking about finance in business. Ashley How says there’s a real need to “overcome the persona that finance are the gatekeepers and gatekeepers alone.” For growth, there needs to be a more holistic strategy and a “more innovative approach to the entire business and the growth of the entire business”, and that’s all about “spending the necessary resources to maximise the value being generated by the organisation and the outcomes it provides customers.”

What this relies upon is timely access to accurate data and reporting that helps financial decision-makers to remain informed about the performance of different arms of the business. Automated solutions make this level of reporting and analysis possible. As How explained, there are two focuses. One is the proper alignment of revenue and expenses and while this is a traditional concept it remains extremely valid. The other consideration is a strategic and focused look at the financial data metrics of the entire organisation to formulate a quarterly improvement plan.