In the job description of the finance director, a general point is usually spelled out – to organize the work of financial, economic and accounting services. It is worth deciphering in more detail. So, a top financier will have to analyze the reasons for the ineffectiveness of some actions of the service, optimize scenarios and processes in the enterprise, and possibly make managerial decisions related to personnel. Sometimes it is necessary to solve the problem of “bloated” staff, or, conversely, to achieve an increase in the wage bill. In corporations, you can find an approach when the financial service is viewed as a kind of service link that does not bring money.
That the propose a different approach – to position management as a department that creates a kind of “product”. To do this, it is necessary to develop a system for assessing its quality and “usefulness”. Continuous monitoring and analysis of the financial condition of the enterprise
In order for the company to achieve the goals set by the owner, the CFO should introduce a system of continuous analysis of the economic activity of the business. Capital investment solutions.
Operations carried out using these resources – what action ultimately give a plus, what a minus. Analogue of end-to-end analytics. Determination of the further structure of business financing. The head of the economic department must always keep his finger on the pulse and understand where the finances are moving in the company, how well they are managed, what position the organization occupies in comparison with other players in the market.
Creation of an effective budgeting system
Now it is generally accepted that there are three types of budgets that should be created in a large company:
- Operating rooms are a generalization of information in the context of the operations that the company conducts.
- Financial – the amount of planned income and expenses, assets, liabilities and capital of the company.
- Investment – data about where and how the company invests money.
Understand risk management
The functions of the head of finance also include risk management. It is necessary to understand the modern theory of the qualitative and quantitative understanding of risks, to assess the positive and negative aspects of forecasts that analysts can give. The main quality that a director needs in this area is to be flexible and make effective decisions quickly.
For this, a specific management culture is being introduced into the enterprise – risk management. Simplified, the system looks like this:
- A risk audit is carried out, possible problems are identified, each of which is assigned a hazard coefficient – to what extent such a problem can develop in the current situation.
- Consequences – possible negative and positive results are calculated, for each situation a conclusion is drawn – how critical such a loss is for the company.
- Reasons – for dangerous situations, a list of reasons is compiled that can increase the critical coefficient. If the risk is high, then a roadmap is immediately drawn up that will help the company get out of the crisis.
