Definition

5 Specific tasks of a finance staff in a firm

The financial staff’s task is to acquire and then help operate resources so as to maximize the value of the firm.

Here are 5 specific activities of a finance staff:

  1. Forecasting and planning:

The financial staff must coordinate the planning process. This means they must interact with people from other departments as they look ahead. Lay the plans that will shape the firm’s future.

  1. Major investment and financing decision:

A successful firm usually has rapid growth in sales. Which requires investment in plant, equipment, and inventory. The financial staff must help determine the optimal sales growth rate, help decide what specific assets to acquire and then choose the best way to finance those assets.

  1. Coordination and control:

The financial staff must interact with other personnel to ensure that the firm is operated as efficiently as possible. All business decisions have financial implications.

  1. Dealing with the financial markets:

The financial staff must deal with the money and capital markets. Each firm’s affects and is affected by the general financial markets where funds are raised. Where the firm’s securities are traded and where investors either make or lose money.

  1. Risk management:

All business face risks, including natural disasters, such as- fires and floods, uncertainties in commodity and security markets. Many of these risks can be reduced by purchasing insurance. The financial staff is responsible for the firm’s overall risk management program. Then managing them in a most efficient manner.

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