Page 11 - KZN Business Sense - Vol4 No1 - eBook

INVESTING IN MANAGING THE BUSINESS FINANCES

Rajes Govender CA(SA) do so. A proactive strategy to to your business by having Cash forecasting is critical to In conclusion, ensure that the
FD Vedanta – Executive Solutions prevent such incidences is advised brought on board the misfits. keep cash flow under control with right building blocks are in place
as a long-term investment for Equally important is assessing minimal business disruption and within the finance department
any businesses fall sustainability. the business needs as it grows; distractions. Cash flow is a reality to support sustainable growth.
prey to the situation these needs may outgrow your that can close the doors of a Growing at a rapid rate is just
Mwhere there is so much So, what are some of the current head of finance, requiring business if not managed properly. vanity if the business is not
focus on growing top-line that building blocks necessary to a more senior person to be added sustainable in the long term.
bottom-line suffers. Eventually, ensure the sustained integrity of on top with the overall oversight Invest in a suitable enterprise
management looks at the financial results numbers and function of the finances. risk planning (ERP) system As a mentor and financial
bottom-line results and cannot information for decision making? to support your business governance expert, I often find
explain them. Such a situation Invest in getting on board Implement key controls and needs. As your business grows business owners caught up in
often creeps up on management business policies to ensure and outgrows your current the present operations, with
over a period of time and once the right calibre professionals integrity of the numbers. Often, ERP system, invest in having very little time invested on the
within the finance team. Finance
revealed needs to be resolved resources do not come cheap. You depending on the size of the professional project management long term (3 to 5 year) planning
almost overnight to calm down get what you pay for. If you do not business, not all key controls can of an upgrade or change in the of the business. If no time is
stakeholders. Results that cannot be put in place. In such instances, ERP system with an in-house made for good governance, then
be explained are man-made invest in recruiting appropriately monthly independent review and steering committee overseeing the day will arrive when you are
qualified and experienced people
problems, which, with the right for your finance team then you analysis of numbers by a finance the project. Burdening existing forced to make time. This day
resources on board, can be are very likely to incur significant professional plays a critical role as management who may already be arrives once things have gone
unraveled and explained. But it a key control in identifying any overworked with little or no time wrong. This is a very reactive
takes time and costs money to costs to undo the damage caused anomalies in the numbers. to spare for such critical projects approach and costly too. Rather,
will only lead to throwing more it is best to be proactive and
money at rectifying problems create the investment in good
associated with a poorly managed governance today before you are
ERP project. forced to do so. 
Directors must invest in their
own learning and development Cell: 065 859 5048
to be able to interpret the annual info@fdvedanta.co.za
financial statements and ask the www.fdvedanta.co.za
head of finance questions on
the results with confidence to
fulfil their duties in terms of the
South African Companies Act.
Accepting the results just because
the auditors have completed their
duties and are ready to issue an
unqualified external audit report
is not good enough reason for
directors to approve the annual
financial statements.

MAKING HIS MARK

echnology fanatic, to a centralised power source or to Zungu regards himself as a “They are professionals. I strongly and medium industrial and
Simangaliso Austin any portable power banks. futurist and an inventor. He believe that if it wasn’t for them, commercial businesses as well as
TZungu, always knew he has been working on the PoEX I wouldn’t be where I am today. agricultural enterprises, tourism
was destined to make his mark Inkunz’isematholeni is a flagship Module concept for the past They steered me in the right ventures, co-operatives and
in the specialised and highly programme of Ithala Development two years and prides himself direction and I opened myself to building contractors. 
competitive world of technology Finance Corporation that attracts in handling all aspects of his learning from them.”
and innovation. youth with innovative and business. He believes seeing
sustainable business concepts and his dream gradually coming to Ithala’s Business Finance www.sengwayogroup.co.za
Zungu is the founder and provides incubation and start- fruition is his primary motivator portfolio caters for small
Group MD of Sengwayo Group up in their journey to becoming to further his ambitions.
based in KwaMbonambi seasoned entrepreneurs.
near Richards Bay in “The project costs about R2.5
northern KwaZulu-Natal. The 34-year-old father of two million for product development
The entrepreneur is currently explained how his passion for (working prototype); IP protection
working on a major project entrepreneurship developed and marketing. This is where
to develop a breakthrough from his childhood. “Since Ithala and programme partners,
technology – a mobile power high school, my passion Technology Innovation Agency
harvester for mobile devices. and interests were already (TIA) and Invotech stepped in to
navigated - either I enrol for a assist,” added Zungu.
Out of 198 entries, Zungu’s BTech in Clinical Technology
cutting-edge invention won or become an entrepreneur in On his ability to create
the second special award at the the technology and innovation job opportunities, he said:
Inkunz’isematholeni Youth in space,” said Zungu. “Entrepreneurship is a key lever to
Business Awards recently. He is job creation in any country. I am
developing the PoEX Module, A year after he matriculated at looking forward to joining forces
a highly efficient Power Mbusowabathethwa High School with major cell phone and tablet
Extending Module. in KwaMbonambi, he obtained manufactures to create much
a certificate in Point-of-Sale needed job opportunities.”
PoEX Module is a power from Empangeni Commercial
harvester designed to extend the College. Due to financial Driving SMME and cooperative
battery life of mobile devices. constraints beyond his control, development over the next five
It is designed to be built into Zungu requested permission to years in line with its mandate to
cell phones and tablets for a complete the three-month course promote development is one of the
continuous harvested and eco- in one month to cut down on key strategic goals of Ithala.
friendly power on-the-go. Mobile commuting costs. His goal was
communication devices are realised through sheer hard work Zungu acknowledged his friends
charged without having to connect and dedication. in his entrepreneurial journey: Simangaliso Austin Zungu, Sengwayo Group

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