Running a finance department requires a lot of skill, dedication and diligence. In addition to these, there are other qualities that are needed to effectively run a finance department, such as analytical skills, strategic thinking and good aptitude with numbers.
Every business needs a fully functioning and highly efficient finance department. This department is vital for strategic decision-making and provides much-needed knowledge on the business’s health. At a broader level, every country’s government also has a finance department, which ensures that the country operates as efficiently as possible.
Individuals working in the finance department must be highly skilled and they also need to be able to work in a high-pressure environment.
Looking at finance department responsibilities:
There are various jobs available within a typical finance department. So duties and responsibilities may range from basic bookkeeping to helping with strategic decisions.
At the most basic level, individuals working in a finance department are responsible for the day-to-day transactional accounting for the business.
Working within this department means that you are responsible for tracking transactions as well as for the management of cash flow.
You must devise suitable credit and collections policies for customers and your duties may extend to the sourcing of long term financing.
Measuring and reporting regularly on key numbers is crucial to the success of the organisation. The finance department must be run efficiently in order to achieve this. Some of this may include the preparation of budgets and forecasts. ‘
The finance department essentially oversees financial planning and management activities and is responsible for financial reports as well as making sure that the company is fully compliant with any regulations.
The preparation of risk analysis reports ensures that company management is kept up to date with current financial standing as well as how much risk the company can actually afford.