Exhibitions gives opportunities for product demonstrations to customers — Jovita Madojemu
Jovita Madojemu is the Managing Director of Pundit Bookkeeping Services Limited. An astute accountant, she has great experience in helping businesses manage their finances and helping them track spending.
She has helped many clients make informed financial decisions through her services. In this interview with Zenith Exhibitions, she shares on the importance managing finance as a manufacturer, and the benefits of exhibitions in any economy.
Share a bit about your organization.
Pundit Bookkeeping Services offers general bookkeeping services targeted at emerging businesses. We understand that many businesses in dire need of a clear co-ordination in their business finances often think that such professional service is prohibitive. We are therefore positioned to bridge the gap between such businesses and professionally prepared books of accounts.
On the other hand, many businesses do not usually have enough work to keep a fulltime in-house bookkeeper busy every day. A part time, qualified bookkeeper is often the best option, delivering significant personnel cost savings to the business owner. That is where Pundit comes in.
We understand that bookkeeping is a universal point of pain for entrepreneurs, hence the dedication of our team to changing this. As a business, we get satisfaction when the business owners we interact with make more profitable decisions on the basis of the credible numbers we provide for them in the form of business performance reports on a monthly basis.
What is financial management and why is it important for manufacturing firms?
Financial Management has to do with planning, directing and controlling the financial transactions of the business. When there’s good financial planning in place, such a company will have enough supply of funds to run, these funds will be efficiently utilized, shareholders will get good returns and also the company can look at making beneficial investments in non-current assets.
For a manufacturing firm, there are huge investments in plant and machinery as well as raw materials which need to be converted to finished goods. Owners of such companies will constantly be confronted with concerns around determining the adequate amount of working capital required so that production can go on smoothly and short-term obligations can be settled promptly.
There will also be germane concerns about properly pricing the items sold so that it can both be profitable and give a meaningful return on assets or return on capital employed.
Where there is poor financial management, the firm could yield very poor returns on capital employed and where this persists, such a company may have to pack up. We have already seen this happen in several cases.
Proper financial management will see that finished goods are properly priced, customer receivables are properly tracked and converted to cash within a reasonable time, and funds are not diverted to purposes other than the primary purpose of the business existence.
Why should manufacturers hire a financial manager?
Manufacturing companies have several moving parts when it comes to financial transactions. There is no way the company can keep it together without having not just a financial manager but a team of trained accounting executives or finance officers to support the financial manager. The company has got to be able to track its investments in raw materials, monitor how those raw materials are converted to work-in-progress and then finished goods. Controls need to be put in place to minimize wastage in the conversion process. The financial manager would need to have a handle of all of this.
Then of course you are looking at cash flow management. The financial manager needs to ensure that customer receivables come in quickly enough to meet up with the company’s payables. Thereafter the Financial Manager would be responsible for the monthly performance reports of the business. This is not something the business owner can do by himself, no matter how small the manufacturing company is, if he is to deliver satisfactory financial results in relation to the investment that has been made in getting the company off the ground.
How important are exhibitions to the manufacturing sector?
The Manufacturing sector is one where there is continuous improvement in existing technologies that deliver improved results for customers. It therefore becomes critical for these manufacturers to engage with customers, to enlighten them on the advancements made in their processes and how this now favourably impacts the new versions of products released to the markets.
Enlightenment on a product and its benefits especially where such benefits are enhanced from time to time gives consumers another compelling reason to use the manufacturer’s products. Exhibitions make this possible, especially because it gives opportunities for product demonstrations for a greater audience of customers. This becomes even more cost efficient than having sales agents visit customer by customer on cold calls trying to get appointments for product demonstrations.