Why It Matters: Financial Data for Your Tech Firm

(part 2 of our previous blog post on: "Accounting… Why Are We Doing This?")

“Imagine running a business without knowing how much money you're making or spending in real-time…” It's like driving a car blindfolded. You won't know if you're headed in the right direction, running out of gas, or if there's a pothole ahead.

Tech firm owners need real-time financial data to make quick, smart decisions. Having up-to-date information lets you understand what's happening in your business, and supports your key decisions. Here are some simple examples of how real-time financial data can help:

1. Track Profitability as You Go:
   Of course your tracking costs: development, staffing, marketing (client/subscriber acquisition). Costs need to be tracked vs (expected) revenue & budget. Tracking profitability & future cash flow helps tech firms see it their on the right track.

2. Stay on Top of Taxes:
   Knowing your tax situation throughout the year helps you make better decisions about spending and saving, so you're not caught off guard when tax season comes.

3. Monitor Free Cash Flow:
   Having accurate financial data lets you know how much cash is left after expenses (free cash flow). This is key to understanding if you’re making enough to cover future investments and growth.

4. Manage Debt:
   Debt can help speed up company results, OR crash the firm into bankruptcy. A top-level financial system helps you track whether debt is being used effectively or whether its crushing the firm. If you have to wait months to get this feedback...your firm could be in grave danger.

Project Future Finances:
Real-time data can help you forecast the rest of the year’s finances. This way, you can plan for growth, avoid major cash challenges, or adjust activities as needed.

“Well-managed Finances are always a Key part of tech firm growth, along with People & Strategy. “   -Bony

🙂 Want to find out how we implement financial systems that help grow small tech companies?

Do you meet the minimum criteria below? Our firm can best help the companies described below:

• Does your tech firm generate revenue?

• Is your firm growing? (Or has specific plans to grow?)

• Do you have more than 3 employees?

If yes, click to request an intro meeting: https://meet.growsmartfinances.com/virtual-coffee