Financial management is a critical aspect of the services offered by Be Mark Consulting
In everyday language, the terms “finance” and “money” are often used interchangeably, but they have distinct meanings. Money functions as a means of exchange and a measure of value, while finance encompasses all material resources, including their formation, distribution, and utilization.
Financial management plays a crucial role in achieving business success. The Chef Financial Officers’ primer responsibility is to translate the strategic vision of the business into a strategy with the main aim of strategy monetization. Key components of effective business management include financial accounting, management control, enterprise valuation, and the facilitation of value growth. These elements are essential for ensuring efficient financial management. Successful financial management demands both knowledge and experience.
One of the significant services offered by BeMark Consulting is financial direction, led by iCFO’s Managing Partner Alexander Mtchedlishvili, an experienced strategic financial executive with over 20 years in the field. His background involves driving operational and financial efficiency improvements, implementing advanced ERP- Enterprise Resource Planning systems – like Oracle NetSuite and SAP Business One, raising capital, managing investments, and collaborating with investors with different cultural and social background.
Alexander Mtchedlishvili notes, “Typically, the formulation of a business strategy starts with establishing a broad industrial strategy vision. For example, in the hospitality industry, the competitive advantage of various services concerning the market is determined. The financial team’s role is to transform this focused industrial strategy into a business strategy for subsequent monetization and fulfillment of economic interests. This process leads to the creation of an accounting policy that aligns with the best economic interests of the business, complies with international accounting standards, and optimizes tax regulations. Based on industry specifics, the organization then constructs the operational and financial model that forms the basis for budgeting.”
According to Mtchedlishvili, successful development requires the creation of financial model scenarios, motivation schemes, management control mechanisms, and conditions for receiving cash funds generated through operational activities. This approach is the key to establishing robust, growth-oriented, and customer-centric financial and material resources within the company – the essentials for business success.
He adds, “Entrepreneurs often possess a unique vision and charisma, where daily uncertainty is a norm, and selfishness is a driving force. Those who understand the market and customers progress toward initial success, while entrepreneurs with a well-defined industrial strategy advance to the next level. Unfortunately, many startups don’t progress beyond this stage. True success, however, lies with entrepreneurs who adopt a professional approach to financial management on early stage of the firm. Early adoption of financial management practice help entrepreneurs to assess industrial and business risks, concentrate on financial modeling, monetize their ideas, and craft a robust business strategy. This financial management practice is vital for determining the company’s value, achieving attractive returns on invested capital, and attracting investments. However, neglecting these principles are commonly drive the business to the failure.
Mtchedlishvili emphasizes that while effective financial management is not the sole determinant of business success, it significantly impacts decision-making. Properly organized processes in finances provide the foundation for sound monetary decisions, which are often the most challenging aspects of running a business. Identifying problems promptly and seeking professional guidance is crucial for startups to succeed.
BeMark Consulting is a versatile consulting company offering a wide range of services, including financial strategy development, accounting policy formulation, business modeling based on financial strategy, implementation of operational and accounting ERP systems, correction of deficiencies, corporate finance services, company valuation, and enhancement of operational and financial efficiency for companies facing difficulties. In summary, they assist organizations in reaching their objectives with high-standard professional services,” says Aleksandre Mtchedlishvili.
For any state, private organization, industrial production, or small company to succeed, knowledge, competence, and experience are essential – attributes that the BeMark Consulting team provides.
For detailed information about BeMark Consulting services, please visit our website.