Your Financial Compass: Recognising the GPS in Your Leadership Journey
Imagine embarking on a long road trip. You’ve packed your bags, checked your car, and planned your route. As you begin your journey, you rely on your GPS to guide you and ensure you reach your destination successfully. Without it, you risk getting lost, wasting time, and even running out of fuel.
Now, picture your organization as that car on the road trip, and yourself as the leader at the helm. Your accountant is the GPS, providing the critical guidance you need to navigate the complex financial landscape and drive your organization to success. But how can you make sure you’re getting the most out of this guidance? By focusing on decision-making and knowing the right numbers, just like using a compass or GPS.
Entering the Right Destination: The Benefits of Asking the Right Questions
When you enter the correct destination into your GPS, it provides you with a clear path, optimal routes, and potential detours to avoid. Similarly, asking your accountant the right questions helps you gain a deeper understanding of your organization’s financial health, identify opportunities for growth, and make informed decisions that lead to lasting value.
Small Decisions, Big Impact
The power of small decisions should never be underestimated. Take the classic example of McDonald’s asking customers, “Would you like fries with that?” This simple question has generated millions of dollars in additional revenue. As a leader, knowing where your sales could improve, like identifying a similar call to action, can have a significant impact on your organization’s growth.
Recalculating the Route: Addressing the Core Issue
It’s not uncommon for leaders to feel uncertain about what to ask their accountant, while accountants may not know what insights their clients need. This communication gap can lead you off course, missing crucial turns and opportunities for growth. So, let’s recalculate your route by asking the right questions.
Mapping Out the Journey: The 3 Essential Questions
To get back on track, ask your accountant these three questions during your next annual review:
- How is my organisation performing compared to others in my industry? Discuss critical numbers, balance sheet strength, and cash flow. This will help you identify where you stand and what areas need improvement.
- What are the financial risks and opportunities if I make specific changes next year? Share your goals, such as increasing sales or hiring staff, and understand the potential impact on your finances, including tax and regulatory considerations.
- What should I start, stop, or continue doing to improve my financial performance? This question encourages your accountant to provide actionable insights based on your current performance and future plans.
Following the GPS Guidance: Implementing the Insights
Just as you would trust your GPS to guide you through unfamiliar territory, trust the insights gained from your accountant to make informed decisions, optimize operations, and set achievable goals. Keep an eye on key financial metrics to monitor your progress and adjust your strategies as needed.
Quantum Leadership Business Simulation
To further support leaders in understanding the numbers that matter, our Quantum Leadership business simulation provides a hands-on learning experience. It helps you develop the skills to analyse financial data, make strategic decisions, and drive transformative change in your organization.
Arriving at Your Destination: Call to Action
Don’t wait for your next annual review to start benefiting from these essential questions. Schedule a meeting with your accountant, recalibrate your financial compass, and unlock the transformative power of informed decision-making.
Road Trip Checklist: Make the Most of Your Accountant Meeting
- Compare your organization to others in your industry
- Discuss critical financial numbers and balance sheet strength
- Identify opportunities to improve cash flow
- Share your goals for the coming year
- Understand financial risks and opportunities
- Determine what to start, stop, or continue doing
- Use insights to make informed decisions and set goals
- Monitor progress and adjust strategies as needed
By following this roadmap and asking your accountant the right questions, you’ll be well on your way to reaching your destination: a successful, thriving business. Safe travels!