Poor cash flow management is the underlying reason why 82% of businesses fail. So, no matter how great your business model may be, your success ultimately relies on sound financial management. Process mapping can make sure your finances are handled as efficiently and effectively as possible, providing hassle-free financial management. It works by visually mapping out the precise stages involved in all of your business’s financial-related tasks in order to reveal problem areas you can then improve upon. Using process mapping to manage the financial side of your business can ultimately help your enterprise run more smoothly and efficiently and reduce monetary loss.
Optimizing workflow with process mapping
Think about the financial tasks you complete periodically, such as, budgeting, financial reporting, tax functions, financial planning and analysis, risk management, and managing working capital. Process maps can be used to clearly describe each task, the steps required to complete each stage within each task, how much time is spent on each step, who performs it, if any conditions should be met, and current technology used (if any). For example, the task of bookkeeping can be broken down into several distinct stages with process mapping: document collection, document sorting, data-entry, payment processing, and reconciliation and reporting. Based on information gleaned from process mapping, you can then identify areas for improvement and research technology solutions to optimize the workflow. Using technology to manage your finances is more efficient than sticking to traditional manual methods like spreadsheets, paper forms, and emails. Manual methods of financial management are time-consuming and leave room for error, whereas technology allows for greater speed and accuracy.
Benefits of process mapping for hassle-free financial management
Using process mapping to manage your finances provides greater transparency and clarity over every task, whether you’re making payments or ensuring consistent cash flow. You get to visually see the details of each task laid out in front of you from beginning to end. No stage is left up for guessing or chance. Process maps can therefore increase the efficiency of your financial management and keep setbacks and inaccuracies to a minimum. Moreover, process maps also identify the specific employees responsible for the completion of each task. You simply have to take a quick look at the process map to receive complete transparency and accountability in this regard. Process mapping is also a great way to identify potential risks, which can negatively impact your earnings, customers, and productivity. Once you’ve become aware of these possible risks, you can then work with your team to find ways of reducing the chances of financial loss.
by guest contributor Jennifer Hole