16/11/2023
💰🕵️ Do we all agree financial health of an organization needs periodic check up?
🎯 Doctors suggest us to undergo periodic health check-ups especially after 40s, mostly in the 50s it becomes a must. Depending upon our health profile, undergoing periodic medical checkups saves our lives for any unforseen events.
🎯 Same way, companies need to undergo periodic health check-ups from business and finance experts to safeguard the organization and interests of all stakeholders. Larger companies generally have a well developed management systems and reportings to assess it's financial health.
🎯 It is MSMEs which mostly don't have proper systems to assess it's financial health. As far as things go well and cash in hand is surplus, financial health might look great. But when things becomes tough, MSMEs sense the issue in their business and look for solutions. It is important to proactively assess financial health of a business to avoid unnecessary surprises.
🎯 There are various measures and reportings which provides various key numbers and expert advisory to MSMEs proactively and help such organization's to avoid poor financial health and also tap newer opportunities apart from existing footing! Generally, management will be more busy in business operations, leaving the financial health to chance with just basic checks.
🎯 But, even MSMEs need detailed reportings and advisory to safeguard the business and also interests of all stakeholders. For example, apart from regular P&L ratios, there are lot of measures which can be usefully adopted to MSMEs such customer profitability, product cost structure, ROIs on business, product portfolio, customers, region (domestic and international) etc to assess the financial health of business various angles.
🎯 Do you any other crucial indicators for MSMEs? Please type in the comments section.
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