What are the duties of finance? The finance team plays a crucial role in ensuring the financial health of the organization and supporting the achievement of its goals.

The financial affairs held by the finance team are not only limited to recording transactions, managing income and cash flow, and carrying out accounting activities including payments. More than that, the finance team is fully responsible for the flow of financial information and ensuring the smooth operation of the organization.

The magnitude of the finance team’s responsibility depends on the type and complexity of the company. The larger and more complex the company’s operations, the greater the responsibility of the finance team in managing finances effectively and efficiently.

For example, in a manufacturing company, the finance team needs to manage production budgets, monitor operational costs, and ensure smooth payments to suppliers. In a service company, the finance team needs to analyze the profitability of the project, manage receivables, and ensure the optimal use of financial resources.

Duties of the Finance Section

 

Finance is not just about numbers and calculations, but about strategy, planning, and making the right decisions. Finance professionals play an important role in ensuring the smooth operation of the organization, from managing cash flow, allocating financial resources, to minimizing financial risks.

The responsibilities of finance professionals are fairly broad and diverse, depending on the type of organization and level of position. Here are some of the main tasks commonly encountered in finance:

1. Financial Planning and Budgeting

• Develop a comprehensive and realistic financial budget, considering the organization’s revenue, expenses, and goals.
• Conduct financial analysis and projections to predict future financial performance.
• Identify financial opportunities and risks, and formulate strategies to optimize profits and minimize losses.

2. Cash Flow Management

• Oversee and manage the cash flow in and out of the organization.
• Ensure the availability of sufficient funds to meet operational and investment needs.
• Maintain smooth payments to suppliers, employees, and other interested parties.

3. Financial Reporting

• Prepare financial statements that are accurate and in accordance with applicable accounting standards.
• Analyze and communicate financial information to internal and external stakeholders.
• Assist management in decision-making based on reliable financial data and information.

4. Financial Analysis

• Conduct financial analysis to evaluate the financial performance of the organization.
• Identify financial trends and patterns that can affect the organization.
• Provide strategic recommendations to increase profitability and company value.

5. Financial Risk Management

• Identify, analyze, and manage the various financial risks that organizations face.
• Formulate strategies to minimize risk and protect organizational assets.
• Ensure compliance with rules and regulations related to finance.

6. Fundraising

• Seeking funding sources to support the organization’s activities, such as through bank loans, bond issuance, or equity investments.
• Ensure the effective and efficient use of funds.
• Build and maintain relationships with investors and funders.

7. Asset Management

• Manage the organization’s assets, such as property, equipment, and investments.
• Ensure optimal maintenance and use of assets.
• Selling assets that are no longer needed or profitable.

8. Tax

• Ensure the organization’s compliance with applicable tax regulations.
• Calculating, depositing, and reporting taxes in a timely manner.
• Communicate with tax authorities regarding the tax obligations of the organization.

Skills and Expertise Required in Finance

To become a successful finance professional, a variety of skills and expertise are required, including:

• Analytical Expertise: Able to comprehensively analyze financial data and identify meaningful trends and patterns.
• Problem-Solving Ability: Able to solve financial problems creatively and innovatively.
• Communication Skills: Able to communicate complex financial information clearly and concisely to various parties.
• Interpersonal Skills: Able to build and maintain good relationships with colleagues, clients, and other stakeholders.
• Strong Business Understanding: Have a deep understanding of business principles and how finance contributes to the achievement of business goals.
• Knowledge of Accounting and Finance: Have a strong knowledge of accounting, finance, and applicable accounting standards.
• Ability to Utilize Technology: Able to utilize information and communication technology to support work in the financial sector.