Relationship of Financial Management to other Organizational Services
The financial management of a company is the very core of business as it brings the past, present, and future together. Organizations that are poorly managed in the financial area impact every other department from marketing to credit and collections. All eyes in the company must turn to the numbers at some point and all financial managers must develop the ability to communicate essential financial information in ? way that makes it useful for decision making.
The financial dynamics of an organization can be complex and impact every function of a business. Marketing can only build a campaign based on an allotted budget. Managers can only give salary increases to staff if the company is earning enough profit. Obtaining organizational credit relies on sound financial performance. Adequately outfitting a business with appropriate levels of management, staff, and operating resources relies on the company being financially successful.
Presenting…the Finances!
When you think about presentation skills, it’s normal to first look to the sales department meeting with customers or the call centre taking client calls or even debt collectors contacting clients. But financial management also requires developing presentation skills because financial managers must be able to present relevant information that leads to sound decision making.
In fact, financial managers require business training on many levels in order to be effective integrators within the organization.
* Develop, interpret, and manage critical data
* Identify relevant financial information which assists departmental managers with decision making related to staffing and other resource management
* Identify areas where financial performance can be improved such as through increased debt collections
* Identify financially high risk areas within organization
* Manage assets within company that leads to product or service improvements
* Manage accounts to produce increased sales and collections
* Develop cost savings measures
* Identify financial resources available which enable organization to pursue strategies supporting mission
Personnel working within the financial management areas are employed in a variety of positions ranging from executive officers to front line managers. The interesting aspect of financial management is that it can be position which focuses solely on financial issues or it can be a job function included in ? larger job structure.
For example, an accountant working in the finance department may only work with financial data and reports. A debt collection department manager may use financial management skills to monitor results but also manages staff, communicates with customers, and serves as the contact point between his or her department and other organizational functions.
Organizationally Pervasive
For that reason, it is important to determine all organizational positions which can benefit from financial management training. It is an essential function that is pervasive. Managers can use the skills to look back to see what has been successful and unsuccessful; to the present to determine if current strategies are successful; and to the future to establish long term financial goals.
Good financial management is essential for quality customer service, strategic planning, credit management, and marketing success. Financial management provides ? barometer for competitive status and customer satisfaction.