Financial Management: Use these sample phrases to craft meaningful performance evaluations, drive change and motivate your workforce.
Financial Management is the skill of learning how to handle accounting, finance, and organizational management through providing daily data on the operations that take place every day.
Financial Management: Exceeds Expectations Phrases
- Hires a good bookkeeper or uses an accounting software to keep accurate and timely track of the company's income and costs
- Keeps track of all the company's expenses in order to fine-tune where the company's money goes
- Makes clear financial projections in order to be able to foresee and address possible future problems
- Sends out invoices as soon as one can or after releasing goods and services in order not to forget to ask for payments
- Separates the company money with personal finances in order to gauge profit easily and keep track of the company's expenses
- Keeps track of the company loans from banks and makes sure to pay back the loans first before using the remaining profit on the company's expenses
- Makes sure taxes are paid as promptly as possible to avoid penalties from late payments
- Keeps business trips' costs minimal; does not overspend on luxurious traveling or accommodation
- Manages legal fees by choosing the most cost-effective billing option for the company and making sure that the company's expectations are clear to the lawyer before paying for the services
- Makes sure that expansions are made carefully and steadily; avoids pushing too much money into expansions
Financial Management: Meets Expectations Phrases
- Considers renting equipment rather than buying in order to avoid maintenance costs and overpaying on equipment that is only required for a certain period of time
- Applies for loans when the company finances are still in good shape in order to increase chances of securing the loans
- Looks at the company's financial performance and compares it with financial statements from the past in order to project the future of the company, its expenses, and cash flow
- Asks for upfront payments from clients, introduces plans that give discounts for pre-payments or full payments, and adds late payments penalties where possible
- Uses a mobile payment system to accelerate cash flow and to make payment for products and services faster and easier
- Follows up sent invoices using text messages or emails; creates set templates for SMS and email follow-ups
- Sets payment terms of no more than seven days in order to ensure that payments are not lost in the process or forgotten
- Is always ready for risky times; ensures that the company has a risk strategy in place just in case there is a problem in the business environment
- Keeps track of sales' call logs and their results in order to know what works for customers and drop what doesn't
- Develops comprehensive financial statements or loan proposals in order to establish a strong relationship with lenders and secure loans
Financial Management: Needs Improvement Phrases
- Waits until when the company faces financial problems to apply for loans and other credit
- Makes major purchasing decisions without first checking the company's budget or financial statements
- Reduces the quality of the products sold by the company in order to minimize production costs
- Does not take the time to familiarize oneself with different types of credit thus leaves decision-making to the lender
- Does not know when one should invest the profits made from the company or when one should plow the profits back to the company
- Allows the bookkeeper to write checks for the employees without making sure that everything involved in the payroll process is streamlined
- Does not create a cash flow budget thus loses track of how the company pays its expenses and how revenues are managed
- Mixes company money with personal finances thus finds it hard to keep track of the company profit or its expenses
- Does not keep the company's payables up-to-date thus loses track of how much the company owes, to whom, or whether the company is past due on any bills
- Does not try to negotiate for better deals when contracting with suppliers or buying products from vendors
Financial Management: Self Evaluation Questions
- Describe a time when your company has faced an unexpected expense. What was the expense and how did you handle it?
- What are some of the methods you have used to help your company manage its finances effectively?
- Which is one of the best deals you have ever negotiated with a vendor? How did the company benefit from this?
- What tools/techniques have you used to keep track of the company's cash flow? How have these tools/techniques helped the accounts department?
- Describe a time when your company has made a huge profit. What do you think made this possible?
- Describe a time when an important project has failed due to poor financial management. What was wrong with the finances and how did you fix it?
- What factors do you consider when making a major purchasing decision? Give an example of the last time this happened
- In your opinion, when do you think is the best time for a company to borrow a loan from the bank? Explain your answer
- Describe a time when your company was successful in reducing its expenses. What are some of the strategies you used and how did the company benefit from this?
- Describe a time when you have had to deal with a customer who had exceeded the company's payment term. How did you go about it?