Finance Manager’s objective is “ Improve debt status on balance sheet”. How can he measure the fulfillment of his objective?
These are some potential indicators:
1. Long term debt
Its an amount on the balance sheet which is due in more than 12 months time. If your company records $400,000 as a long term debt and decreasing it by 50% would have a positive influence on your balance sheet.
2. Income-generating capital assets
You can utilize income-generating assets to ensure revenue. If you are increasing income-generating assets by 20% it would increase revenue which in turn improves the debt status.
3. Debt needs
you can regularly assess debt needs with internal stakeholders. Schedule a Weekly and Monthly team meetings to discuss how to reduce debt, analyze and monitor balance sheet ratios to assess the leverage of long term debt, prepare and submit a detailed report.