If real problems arise, the financial director selects options for solving them:
Posted: Tue Jan 21, 2025 8:27 am
When talking about who the CFO is and what his responsibilities are, it is important to understand that he relies on reports and management instructions when planning the budget. Namely, he distributes amounts across departments and projects for each month. If, for example, a blog does not pay for itself, and the company does not receive traffic and leads from it, this expense item can be reduced several times. If, however, more clients come from posts than from contextual advertising, the investment limit increases.
There are two possible approaches here: either the amounts are simply distributed among departments, or everything is written down down to the expense items. In the first case, department heads decide how they will spend the funds: motivate their employees with bonuses or pay for the services of freelancers, trying to increase the number of tasks performed. The financial director monitors the budget utilization and intervenes only when the established limits are violated.
If we consider the activities of the financial director in the long term, then he builds a financial plan for the development of the enterprise, for which:
evaluates reports for previous car owner database periods, compares indicators for them and areas, divisions, for example, for a month, quarter or year;
selects achievable goals based on the current state of affairs - for example, he can decide that the company should and is able to increase net profit by 5% in six months;
selects tools that will allow you to achieve your goals, draws up and explains an action plan;
monitors how department heads implement his strategy and helps them with this in case of difficulties.
Sources of financial resources of the enterprise
Source: shutterstock.com
Financial strategy is a living tool that requires constant adjustment. Therefore, the specialist we are interested in sets others after achieving some goals. The strategy can be created for a specific project or area of the company's activity, for the development of the organization as a whole. For example, within its framework, a company can work on one application for a smartphone and understand what it will allow to achieve in a year.
But the key responsibility of the CFO is to ensure the success of the enterprise. He is responsible for financial stability, the availability of funds for current expenses, such as staff salaries, equipment repairs, purchasing goods, etc. He relies on the information collected to anticipate cash gaps, various debts and other business difficulties in advance.
If real problems arise, the financial director selects options for solving them:
resorts to factoring in an effort to quickly collect accounts receivable and use these funds for upcoming large expenses;
takes out loans, such as a business development loan, uses leasing and other approaches;
finds investors, prepares proposals, negotiates to attract the necessary funds.
It is worth remembering that this specialist cannot make decisions on his own – he informs the management about possible future problems and suggests how to deal with them. Only when the approval of the management is received, he applies for a targete
There are two possible approaches here: either the amounts are simply distributed among departments, or everything is written down down to the expense items. In the first case, department heads decide how they will spend the funds: motivate their employees with bonuses or pay for the services of freelancers, trying to increase the number of tasks performed. The financial director monitors the budget utilization and intervenes only when the established limits are violated.
If we consider the activities of the financial director in the long term, then he builds a financial plan for the development of the enterprise, for which:
evaluates reports for previous car owner database periods, compares indicators for them and areas, divisions, for example, for a month, quarter or year;
selects achievable goals based on the current state of affairs - for example, he can decide that the company should and is able to increase net profit by 5% in six months;
selects tools that will allow you to achieve your goals, draws up and explains an action plan;
monitors how department heads implement his strategy and helps them with this in case of difficulties.
Sources of financial resources of the enterprise
Source: shutterstock.com
Financial strategy is a living tool that requires constant adjustment. Therefore, the specialist we are interested in sets others after achieving some goals. The strategy can be created for a specific project or area of the company's activity, for the development of the organization as a whole. For example, within its framework, a company can work on one application for a smartphone and understand what it will allow to achieve in a year.
But the key responsibility of the CFO is to ensure the success of the enterprise. He is responsible for financial stability, the availability of funds for current expenses, such as staff salaries, equipment repairs, purchasing goods, etc. He relies on the information collected to anticipate cash gaps, various debts and other business difficulties in advance.
If real problems arise, the financial director selects options for solving them:
resorts to factoring in an effort to quickly collect accounts receivable and use these funds for upcoming large expenses;
takes out loans, such as a business development loan, uses leasing and other approaches;
finds investors, prepares proposals, negotiates to attract the necessary funds.
It is worth remembering that this specialist cannot make decisions on his own – he informs the management about possible future problems and suggests how to deal with them. Only when the approval of the management is received, he applies for a targete