As with any corporate sector, the better structure for the finance department is the one that meets and understands all the demands, objectives and challenges of the organization.
This goes for both your internal processes and external relations. After all, more than a functional means of preparing the payroll, the sector has many other equally important responsibilities.
For this, in this article we will place the area under a magnifying glass, analyzing how you can develop the best structure in the financial department from the following topics:
- What is the relevance of the finance department for companies ?;
- What are the main duties of the finance department ?;
- What is the best structure for the finance department ?;
- What are the positions present in a finance department ?.
What is the relevance of the finance department for companies?
Although many people understand the basic concept of good personal financial management, the subject takes on complex shapes for the management of a company.
Thus, on a daily basis it is common to encounter issues that even seem similar to our particular routine, such as:
- avoid spending beyond your revenue limit;
- financial decisions based on accurate data and calculations, not guesses or intuitions;
- attention to the calculation and payment of bills and taxes – such as fees and taxes;
- assertiveness in the investments and expenses generated to obtain a continuous improvement in financial health.
With that, it is easy to analyze that a structure for the financial department becomes elementary to give total support for the organization's growth consciously and immune to unforeseen events.
Not to mention that it is an area of wide versatility, which influences the strategic decision to compose a multidisciplinary team that meets your needs.
Among some of the activities that we most perceive the importance of these specialists, we can point out the direction of net profits, the areas in which the investments will aggregate the projected returns and also the search for financing.
What are the main duties of the finance department?
In general, any work structure is variable according to two unique characteristics: the size of the company and its needs diagnosed. From them, the financial department gains shape, contours and volume within these particularities.
However, the similarity of some attributions common to the sector, regardless of their size, is undeniable. And, below, we will highlight some of them!
A key area of finance department and that has as its main responsibilities the care in managing the organization's cash flow.
Through this monitoring of the entrances and exits, the specialists of the sector are able to pinpoint the current moment of the company's financial health with precision, preventing unforeseen events from occurring.
Also known as the basis for the accounts payable and accounts receivable teams, account management assesses both the maturity of overheads and attention to deadlines to avoid fines and interest.
It is also worth highlighting the role of accounts receivable specialists – more focused on assessing whether customers are in default and are up to date with their obligations.
The accounting sector it is part of the best structure for the financial department through its differentiated performance in dealing with the company's equity and any of its variations.
Comprised of two parts (assets and liabilities), equity involves both the company's property and other assets and also debts and accounts payable, further complementing the issue of liabilities.
Imagining a continuous development for the organization, in which there is a balance between the generated revenues and the periodic expenses and costs, the financial planning
Based on the data provided by accounting, financial planning is essential for the company to look forward without compromising the budget. After all, it is the area that responds to the future of the organization based on sustainable goals and objectives, which do not generate excessive risks in its execution.
Another sector that focuses on developing a plan aligned with the characteristics and objectives of the organization. With risk management, operations, credit and market risks are constantly monitored so that all decisions are supported by data, not guesses.
Thus, the associated risks are reduced, as well as any associated losses and losses.
Brazil is one of the countries with the highest tax burden in the world and, precisely because of this, it is essential to set up a structure for the financial department that includes this type of specialist to take care of the tax sector completely.
Among the activities of the department, we can highlight the importance of identifying the favorable tax regime for the organization, preventing it from paying more taxes than necessary.
We even know that the subject takes many people's sleep. So we made a complete post that explains, in detail, what is imposed! Check it out after finishing this reading on the best structure for the finance department!
What is the best structure for the finance department?
As we said earlier, the best structure for the financial department is that designed, precisely, for the business reality of that moment.
It can also be thought from medium-term planning, anticipating the development of the organization and any new and / or more extensive demands.
Therefore, we will make an outline of this structure based on the size of the companies, so you have a better detail within each situation foreseen for the scenario.
In the general metric of the best structure for the financial department, many point out a relationship between the size of the company and the size of its sectors.
This has its load of veracity due to the daily needs, demands and outstanding issues about the finances that each organization accommodates in its tasks.
And with micro-enterprises what happens is that many invest in the figure of a financial leader, only. Sometimes, this figure is the owner of the organization, acting on multiple fronts to fulfill the department's main obligations.
The rest, an outsourcing service tends to occur – especially for the areas of accounting and controllership.
With this type of business, it is customary to have a structure for the larger financial department. Accounting, account management and treasury are the most common elements to compose the sector.
Other activities tend to be internalized by professionals who can take on the tasks, as is the case with a professional capable of taking care of the company's controllership.
Absorbing internal demands and investing in specialists for each function, the best structure for the financial department of a large company consists of:
- account management;
- risk management;
- tax management.
Each of these areas has its respective leader and subordinates, who take care of the tasks common to the department.
What positions are present in a finance department?
Let us now better understand how the best structure for the financial department works based on the positions within that sector. Thus, you not only learn to design the shape of your financial area, but you will identify the type of specialist that is ideal for your needs and goals.
Below, we highlight the main positions, see what they are:
- financial director, who is responsible for planning, organizing, managing and controlling all activities relevant to the sector;
- financial manager is the one who has the mission of managing the entire cash flow of the organization;
- financial supervisor, who can take on the work of preparing budgets, financial statements and other functions;
- financial analyst is the professional who deals directly with the routine planning of the financial sector, always keeping an eye on payments and receipts;
- tax analyst, who is the specialist responsible for declaring taxes, in addition to assessing all information relevant to the company's tax burden, as well;
- financial assistant is a type of professional who is always hands-on, translating into action everything that the financial planning (and routine) of the company understands.
That is: you can assemble both a lean and robust structure. This will all depend on the identified need for your company to be effective and economical – always making use of the best professionals in the market combined with current technologies that contribute to a better routine.
You can also take a first structuring step for your company's financial department sharing this post on your social networks!