Updated: 13/04/22
One of the keys to a well-functioning company is undoubtedly to carry a good control over finances. Controlling, analysing and efficiently managing the figures, and managing the financial department well, is one of the basic keys to a company's success. Moreover, it can be internal or external.
When the financial volume of a company is very large, it usually has its own financial department, with several people in charge of managing it and the chief financial officer. However, no matter how small a company is, it must always manage its finances correctly. In the case of self-employed or SMEs It is best to have a single person responsible for administration, supported by a consultancy with specialised professionals who will ensure the proper functioning of the financial area.
Functions of the financial department
The financial department is in charge of keeping an overview of the good planning of a company's finances. His/her competencies include all those directly related to the economic situation of the organisation, administering and managing income and expenditure efficiently.
One of the most important tasks is to planning, structuring and preparing annual budgetsThe financial planning tool, the fundamental tool that details all the company's financial planning and establishes the objectives and the economic resources necessary to achieve them.
Another of the finance department's responsibilities is to manage all the investment and financing issues. Find the most advantageous options to invest profits and obtain the best possible financing for the implementation of your projects. They must also know how to manage any unforeseen financial problems should they arise, such as bad debts or unforeseen extraordinary expenses.
In short, the financial department is in charge of monitor and manage everything related to the cash management and treasury managementThis includes budgeting, costing, accounting, expense management and administration, financing, investments, payroll and personnel expenses, among others, in order to maintain an overall financial control that allows for a healthy balance for the smooth running of the business.
Why is the financial department so important in a company? company
In the same way that a company cannot function without human, technical or material resources, a company cannot function without human, technical or material resources. without financial resources is doomed to failure. That is why it is so important to have a financial department that is responsible for planning and controlling accounting, cost control and proper management of receipts and payments in order to maximise profits while minimising costs and risks, resulting in a profitable and liquid company.
Internal and external finance departments
Companies have the choice between having a department within their organisation or outsourcing the services. The external financial management is the transfer of the company's financial functions to experts outside the organisation. If you are interested in getting more information on how we can help you at Grupo Lever, please do not hesitate to contact us.
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