When you are about to start a new company or are an owner of an already established business, there are several departments that play a crucial role in the overall growth and success of the venture. Where the marketing department looks into the endorsements and sales of your products, the HR departments caters to needs of employees and overall administration. In the same way, there is one department that is highly important as it plays a major role in achieving the goals. That department is the one which deals with finance.
What is a finance department?
The particular unit of an organization that looks after the money concerns and accounting is known as a finance department. The prime functions of this department include planning, organizing, auditing, accounting for and controlling its company’s finances, and produces the financial statements. All these roles are very important when it comes to the smooth functioning of an organization. Not only on-site companies but online trading companies like HB Swiss too have sound finance departments that provide reliable investment plans and offers.
Responsibilities of finance department:
The actions and functions expected out of a good finance department cover an extensive range of responsibilities. Be it simple bookkeeping or providing details to managers in making tactical decisions, this department holds great importance when it comes to the reputation and status of the company.
Here are some additional responsibilities of a finance department in a particular firm-
- Keeping sufficient funds available in the company to meet all the targets.
- Ensuring that the costing doesn’t go overboard.
- Ensuring that there are no issues when it comes to cash flow.
- Keep the profit levels maintained.
- Accountable for recommending and sourcing longer term financing.
- Preparation of presentations focusing on the correct finance state of the company when planning to approach a venture capitalist.
- Create the company’s budgets and estimated turnovers.
As all these aspects are extremely important for a company’s growth, the finance department automatically becomes one of the most crucial sections in a business. For, no other department other than this can pull off these functions and responsibilities as efficiently.
How to have a strong finance department:
It’s truly said that if the foundation is not strong, the building will not stand tall for long. Same is the case with companies, where their primary foundation is the finance department. If you do not have a strong and reliable finance section, you will only land up with countless loopholes in your strategies.
Here are some tips to fortify your finance department in the easiest way-
- Involve the fresh candidates in making presentations to judge their skills and confidence.
- Understand that their communication skills hold great significance and work on it in case they are not strong.
- Try to train your staff with leadership qualities right from the beginning. Do not wait for them to gain good experience and then get started.
- Involve traditional classroom training and take one-on-one sessions to understand their weaknesses.
- Believe in teamwork and make your staff members believe in the same.
Be it a small business or elaborated one; remember that if your finance department is not strong, there are chances that your business might incur losses in different ways. Make a strong team and move ahead with your business to achieve all the objectives in the most secure way.