Why a Financial Expert Plays An Important in an Organization?
Managing finances in a business is a very important thing. A little bit wrong plan in managing the finance can create a panic situation in the company. This thing may cause long term and short term losses and the trust of the board members decreases. Thus, it becomes important to have the best financial Expert on the team. It is good to have an expert’s eye on the financial aspect of the business.
Managing finance is not only a thing of concern only for huge companies. When it comes to small businesses or start-ups, having a good financial Expert becomes very important. This is because he can directly save the company from making an investment that may cause loss. These companies don’t have many funds to invest. They cannot invest in a lot of options available. Thus, the role of a financial Expert increases in this case.
Below are some key functions of a financial Expert in an Organization:
• Creating the strategies: Every action that is related to financial deals in the company needs a plan. This plan must be created by the person having knowledge and experience about financial markets. These strategies prepared by the Financial Expert can help all the branches of the company.
• Documentation: Managing business needs a lot of documentation. When it comes to managing the finances, previous statistics of the company and the statistics of the market becomes very important. By understanding these statistics the financial Expert can find the most promising channels so that the company can make a profit. Lacking any document or any important statistic can divert the company from reaching its goals. All the departments should have proper documents ready. This is because this can directly affect the budget for each investment.
• Managing the accounts: Managing the accounts of the company is also considered as an important part because they are related to a lot of plans and decisions. The financial accounts can help in managing short term and long term investments, managing taxes, creation on the budget for investment plans. Having good records is also important for the integration of the Company. Having all the records under one umbrella can make things easy. The data can be easily accessed by any of the team and can be used more efficiently. If one team has upgraded the data, then everyone gets the benefit. This helps the company to avoid ambiguity.
• Offering financial advice: The way a financial Expert makes his financial decisions directly affects the growth of the company. This can be clearly seen as almost every business depends upon the investments for its growth. A financial Expert can plan how a company is going to pay the money back, in making budgets, in cutting the irrelevant cost etc.
• Investment: Having a good investment plan can ensure good returns for the company. A good investment plan should be created in such a way that in case the market behaves opposite to the goals, the Assets can be held. This can reduce the losses of the company. He needs to decide the flow of money and keeping that in mind he needs to invest. The expert needs to keep looking for the most promising and new areas for investing. He needs to provide the first mover's advantage to the company.
James Ian Gillingham