The Best Books For Founders Looking To Nail Financial Management

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As a founder, one of your key jobs will be managing the financials.

Whether you want to work on a tight budget, or invest highly in growth, keeping on top of money can make or break a business.

Luckily, before you have the funds to hire a CFO, you can get to grips with financial management yourself by reading.

 

What Does Financial Management Usually Entail?

 

When it comes to business finances, financial management will cover things like forecasting, budgeting and allocating spend.

Some key elements of financial planning include:

• Setting financial goals for the team and keeping them accountable.
• Making sure the business stays tax compliant.
• Budgeting, including staff hires, marketing budgets and implementing new systems.
• Keeping on top of cash flow, making sure the company stays profitable.
• Deciding where to invest, and where to pull back.

Luckily, if this all sounds a little confusing, a number of financial managers have put pen to paper to explain how to master it. Some of the best books include:

 

Profit First

 

 

Profit first is all about how to make your business a money making machine by prioritising saving over spending.

Author Mike Michaelowicz tells entrepreneurs that expenses should only be spent after profit is taken, allowing them to ensure their businesses are always bringing in cash.

Buy the book here

 

The Psychology of Money

 

 

This book is all about how to think about, and use money to your advantage. Whilst it can be applied both on a personal and business level, the idea is to reframe how people think and behave with money.

Once this behavioural change occurs, it will affect all areas of a person’s life, including the way they financially run their business.

Buy the book here

 

 

The Total Money Makeover

 

 

The total money makeover teaches entrepreneurs how to build budgets that work for them.

His plans include paying off all debt, building good habits and setting aside money for the unexpected. Once these elements are in place, Ramsey argues that you can set yourself and your business up for success.

Buy the book here

 

Financial Intelligence for Entrepreneurs

 

 

This book helps founders understand the numbers behind their businesses by making money more understandable.

It teaches how to look at profit margins, manage cash flow and make the right financial decisions that are sure to drive growth.

Buy the book here

 

Fundamentals of Financial Management

 

 

This book is almost like a textbook around corporate financial management.

The basis of the book is helping founders understand ‘what’ and ‘why’ they are making certain financial decisions. It also comes with a whole host of digital documents to help put it into action – making it easy to implement.

Buy the book here

 

Measure What Matters

 

 

Not just a book about finances, Doerr’s book on OKRs (Objectives and Key Results) talks about the importance of setting measurable goals – with finance being one of them.

Founders will learn the importance of tracking performance and staying accountable, helping them measure success in all areas of their business – including finances.

Buy the book here

 

Financial Management Essentials You Always Wanted to Know

 

 

Want to make good financial management decisions? Then this book is for you!

It goes through everything, from learning about how to analyse finances, to creating budgets and how to forecast correctly.

Buy the book here

 

The Strategy Book

 

 

Strategy is all about thinking about what you want the future to look like and how you get there. Whilst this can be on a bigger business level, it can apply to financials too.

This book is perfect for anyone looking to build a financial strategy that works – helping to set them up for success.

Buy the book here