What are financial resources?

Financial resources refer to the availability of money. They are the lifeblood of organizations and are essential for their existence, growth, and success. Financial resources are necessary to enable capacity utilization, purchase raw materials, and more. The need for these resources partly varies with the scale of activities but also follows a consistent pattern.

Financial resources enable organizations to carry out daily operations such as paying employees, purchasing raw materials, and covering operational costs. Additionally, organizations need financial resources to invest in new projects, technologies, equipment, and infrastructure to stay competitive and achieve growth.

Financial resources help organizations expand their activities, enter new markets, develop new products or services, and attract new customers.

Sufficient financial resources also allow organizations to manage risks and cope with unforeseen events, such as economic downturns, changes in market demand, or unexpected expenses. Moreover, financial resources are crucial for managing an organization's capital structure, including obtaining loans, issuing shares, and managing debt to optimize financial health.

Through your company's cash flow, you maintain visibility over your financial resources, gain insight into various cash flows, and most importantly, understand how you can influence them. This is crucial to ensure there are always sufficient financial resources to meet your obligations.

Remember the importance of a 12-month rolling forecast. This forecast provides insight into how your organization's activities will develop over the next 12 months. It serves as a guide for related figures, including operating income (or EBIT) and cash flow.

Sustainable success through manageable and controlled growth

The ICR online business software helps entrepreneurs and organizations find balance and peace, through manageable and controlled growth, with the goal of a healthy organization and sustainable success. We do this through the all-encompassing ICR cycle.

Choose our successful approach and start your process to go from ambition to result with the ICR Ambition Refresher!

The comprehensive ICR cycle