1. FINANCIAL
INTELLIGENCE
FOR BUSINESS
OWNERS PRESENTATION BY SEUN AJILA

2. What is
Financial
Intelligence?
Financial intelligence is the
process of collecting business
data and turning it into
information that is meaningful
and actionable towards a
strategic goal.

3. BY STAYING ON TOP
OF YOUR FINANCES
YOU CAN: Understand how your business is
performing
Make informed decisions about your
spending
Make sure you have enough money in
the bank to pay the people you need to
and when you need to
Stay on top of your tax payments
Provide accurate information to get
investment or a business loan
Set and achieve key business milestones
— like expanding into new areas, or
hiring someone new.

4. What happens online
7 ACCOUNTING
KPIS TO WATCH
WHEN SCALING
YOUR BUSINESS
Before you start considering scaling
your business, you need to think about
strategy as successful growth is more
about managing your numbers
effectively and planning sustainable
development. To achieve this, you
need to be monitoring the right
metrics and using them to develop
your growth strategy.

5. OPERATING
CASH FLOW
Your operating cash flow is the total
cash your business produced from it's
operations. It indicates whether your
company has sufficient cash flow to
operate or if you need more funding.
The operating cash flow focuses on
money in and out related to your
primary functions, such as inventory,
services, salary, and sales.

6. WORKING
CAPITAL
Working capital measures your liquid
assets that meet your short-term
financial obligations; this includes
short-term investments, accounts
receivable, and cash on hand, which
outlines how your business generates
money.
Your working capital is also known as
the difference between your current
assets and your current liabilities; this
indicates your operational effectiveness.
Generally, solid working capital has a
ratio between 1.2 - 2.0. Anything below
1.0 is negative working capital or
operating at a debt. A ratio over 2.0
could indicate that you aren’t
maximizing your surplus assets for
revenue.

7. SALES
GROWTH
Sales growth is a metric that indicates the ability of the sales team
to increase revenue over a fixed period. This is a crucial KPI to
determine financial projections for growth and business decisions.
Sales growth should be monitored weekly or monthly to
determine consistent growth or identify any issues with your teams
or processes. It’s essential to address these issues before scaling to
prevent any negative trends.

8. SALES
REVENUE
Revenue is the first KPI most businesses
evaluate to gauge their success and market
demand. Sales revenue refers to the income
from all customer purchases. Measuring
revenue growth rates requires breaking down
measured performance by a time period, say a
month, quarter, or year. For example, month-
on-month, quarter-on-quarter, Year-on-year
can show you market fluctuations, changes in
consumer demand, and may provide insights
regarding factors impacting growth or decline.

9. Your ROI or Return on Investment
measures your profits or losses against
your investments. Typically a percentage
used to compare profitability or
efficiency of various assets or profits
gained from marketing efforts. If your
ROI is positive, you can develop a
strategy for maximizing your investment
options to fuel growth and profitability.
RETURN ON
INVESTMENT

10. GROSS
PROFIT
MARGIN
Gross profit margin indicates your
company's financial status by
determining the amount of money
remaining in sales after deducting the
cost of goods sold. Your gross profit
margin needs to demonstrate stability.
If your gross profit margin shifts due to
industry changes or a pricing strategy, it
can be adjusted.

11. NET PROFIT
AND NET
PROFIT MARGIN
“If you realize that your margins are slim or never improve over
time, you may need to raise your prices or change the way you
market your product or service entirely to scale properly.
Net profit, sometimes referred to as the bottom line or net income, is
the amount left over after all expenses, including the cost of goods
sold, operating expenses, and Interest on debt, have been accounted
for.
Your net profit margin is a stronger indicator of your business’s
financial health. Your net profit margin is the percentage of net profit
generated by your company’s revenue.
Net profit margin = Net profit / Revenue

12. •Invest in Technology
FINANCIAL
INTELLIGENCE
TO EMBRACED
•Have business emergency fund set aside.
•Ensure you have insurance coverage for
your critical assets
•Place yourself on a salary and discourage
owner’s drawings

13. Q & A

14. THANK YOU