Making money make sense: Building the skills you need to manage your finances
This guest blog post is provided by the Office of Literacy and Essential Skills, which aims to improve the skills Canadians need to adapt and succeed at work
Acquiring a strong financial literacy base, including skills like managing budgets, monitoring cash flows, and dealing with bank loans, can be overwhelming. Making sure you have the skills needed to effectively manage your business' finances can increase your opportunities for success.
According to the Financial Consumer Agency of Canada, the term "financial literacy" means having the knowledge, skills and confidence to make responsible financial decisions. Let's take a closer look at some specific ways these skills can help you tackle routine business tasks with greater confidence and ease.
Cash flow management
One of the most critical aspects of managing your cash flow is your ability to plan and organize. Planning ahead can increase your chances for success by ensuring you are able to cover your business expenses, anticipate and plan for risks, and grow your business. To help you do so, you can use tools such as agendas or calendars to more effectively organize your tasks and your time. For additional tips, check out the Thinking Tip Sheet.
Using software programs effectively
There are plenty of software programs available to help you manage the financial aspects of your business. However, these tools are only effective if you have the digital skills needed to use them properly. Before investing in any program, take stock of your skills by completing the Computer Use Self-Assessment. This assessment can help you identify your strengths as well as take action in areas which may need some improvement.
Training and communicating with staff
Finally, what good are sound financial practices if they're not being used by your employees? Be sure to communicate financial policies in a clear manner. For example, simple and effective training on return and exchange policies and on using the cash register can save you a great deal of money and headache. Have a look at the Oral Communication Tip Sheet for some quick tips and tricks to help ensure you are getting the message across.
Visit our Essential Skills page for ways to improve your skills and help you make responsible financial decisions.