When most people think of financial literacy, they think of managing their personal finances. However, financial proficiency also extends into the commercial sphere. Business owners and managers must be knowledgeable and experienced enough to make sound financial decisions on behalf of their company, clients, and staff. Take a look at these critical skills for managers, and be sure to explore EveryIncome’s other tools to boost your financial literacy!
Managing Budgets and Looking at the Big Picture
One of the most vital aspects of financial literacy for businesses and individuals alike is being able to draft a budget and stick with it. Business owners and managers must be able to craft realistic spending guidelines and estimates for their employees to follow, and they must adjust these figures when presented with new information. Managers shouldn’t just think month-to-month — many businesses experience surges in activity during certain times of the year. Looking at the bigger picture can help companies account for these ebbs and flows. Big-picture thinking also encourages conservative spending and saving for emergencies, which can help businesses stay afloat during times of financial hardship.
Understanding Common Terms and Concepts
The world of finance is incredibly complex, particularly when clients, staff, and corporate entities are involved. Managers should be familiar with the relevant financial vocabulary and its role within the business. They should know what income, expenses, interest, assets, and liabilities are, as well as various other standard terms. Other specific regulatory bodies, taxes, statutes, and types of accounts may be important, too. Business owners and managers should understand these concepts, even if they are not the sole parties responsible for their company’s financial decisions. Boosting financial literacy is an excellent way to make more well-informed decisions.
Applying Financial Literacy Lessons to Real-Life Situations
Finally, managers must be able to apply what they have learned when running their business. Knowing the fundamental goals of creating a budget is one thing, but assessing variances in expenses and processing invoices can be entirely different. While boosting financial literacy can be a bit of an uphill climb for those unfamiliar with the concepts, it is essential to continue learning about money when running a business.
Use EveryIncome to Boost Your Team’s Financial Literacy
EveryIncome is dedicated to providing our clients with career and finance management tools to help them create a stable financial future. Whether you are an individual, a small business owner, or part of a multinational corporation, our system of tools and guided learning is tailored to fit your specific needs. Our solutions for businesses allow employers to give their staff the financial planning tools that they need to stay in control of their finances. Contact the team at EveryIncome online or give us a call at (571)370-5400 to learn more about our offerings. For more valuable tips for business owners, follow EveryIncome on Facebook, Twitter, and LinkedIn.