The way I read the things - my professions

These are some of the observations drawn from my last two decades of consulancy years

Size of any business doesn't matter –but profitability and financial stability does. These are something one should be monitoring on a regular basis. Some businessmen say their business is too small to carry out analylitical financial studies that are just a way of not holding oneself responsible for managing the business wisely.

It'll always be someone else's fault when a business fails...that's what one will say. One can choose to succeed or fail. It's always a choice, nothing else - so a choice to be a financially informed business executive is essential. Any business will thank the executive through its increased profitability and longevity!

It's necessary for the long-term success of any business that one understands the financial fundamentals of being a business owner. One does not have to be an accountant or a financial analyst. It's important that one has some key skills in the business toolbox to measure and deal properly with the financial aspects of the business.

Barring few exceptions business executives / owners rarely like to handle the routine financial aspects of running a company. They may provide manpower, facilities but its real function is rarely handled with the seriousness that the function deserves.

It's easy to understand why: Financial management has long ceased to be a money management function. In today’s competitive world it has become a composite function and includes book keeping, financial accounting, resources accounting, performance measurement, MIS, Costing, budgetary control etc. It now concerns with each and every activity in the organization that absorbs a resource and generates a value.

When somebody is deeply involved and have taken financial risks – you are most concerned about the products or services you provide and want to focus your time and energy there. Your financial responsibilities usually fall to the bottom of your ‘desirable duties’ list.

These are some of our observations – surely they do not apply to all and everybody. There are varying degrees of successes and omissions.