Bridge Financial Targets to Business Reality
- Ed Patton
- 7 days ago
- 1 min read
Updated: 5 days ago
Think of financial fundamentals (FF) as financial targets expressed in clear and concise dollar amounts.
When FF are tracked in a commonsense way, business reality is easy to compare to these targets.
Those responsible for results must clearly understand the company’s financial realities…and their relationships to desired outcomes.
Tie together accounting details/financial reporting with business reality and how reality syncs with desired outcomes.
Understanding financial fundamentals — and their drivers and trends — allows leaders to evaluate whether the company’s activities are working and to adjust tactics when needed.
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In simple terms, leaders must be able to clearly understand their company’s financial fundamentals.
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Clear and concise financial fundamentals help management understand results and develop actions that “move the needle” toward the company’s objectives.
FF bridge the gap between leader’s desires and the outcomes of the business’ operations — a gap that is often hidden by the “fog” and “noise” of accounting details and traditional financial reports.
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Financial fundamentals are the critical link between a leader’s desires and business reality.
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Reach out for an introductory phone or video call to discuss how succinct and understandable financial fundamentals have helped the leaders of many privately owned businesses.
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Edward B. Patton
5701 Broadway, Suite 102
San Antonio, Texas 78209
Phone (210) 822-9977
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