Finance managers come in all different shapes. Some function as financial controllers, overseeing the accounting, auditing and budget departments of a company; others act as treasurers, directing the company’s budgets to ensure it meets its financial goals; and some as credit managers, monitoring and controlling a company’s cash flow, chasing late-payers and implementing credit management procedures.
Growing businesses need a finance manager
While there’s no hard and fast rule about the types of businesses that require a finance manager, generally businesses that are growing need a finance manager.
As we’ve written previously, finance managers are financial analysts [What’s a Finance Manager?]. They analyse financial reports and look for opportunities to increase profits, through investments or other activities.
Businesses that are looking to grow or have reached a critical mass and are involved in a number of complex transactions — like universities, hospitals, government departments, and so on — and need a dedicated financial analyst to monitor the financial health or their company should employ a finance manager.
Understanding the risk of growth
As a business grows and matures, it will need more cash to finance its growth, so planning and budgeting for these financial needs is crucial. Deciding whether to fund expansion internally or borrow from outside lenders is a decision made by a finance manager.
Accounts Receivable training courses will give you skills in credit management and help you find a job (employees) and help you get paid faster (business owners and managers)
A finance manager will also find the proper source of funds at the lowest cost, control the company’s cost of capital, and ensure the balance sheet doesn’t become too highly leveraged with debt that will affect the company’s credit rating.
Finance manager in local government
A job advertisement for a finance manager to work for the Queensland government, which involves overseeing a team of 10 finance, accounts and revenue officers requires the following skills:
- Ability to juggle oversight of day-to-day service delivery with hands-on responsibility for higher level financial management activities
- Proven financial modelling, analysis and forecasting experience to support the director and provide financial advisory services to the general manager and board
- Ability to build relationships and work effectively with other managers to ensure effective internal budgeting and financial decision-making
- Pioneer change and foster continuous improvement initiatives, particularly around financial management systems and processes.
Become and independent Finance Manager Consultant
Most of the people who become contractors as Finance Managers have spent many years of their life working their way up the management in a medium or large business. These people know first hand some of the challenges faced by growing businesses and how to navigate the journey.
When these corporate employees lose their jobs or have a family and move further away from the city centre they prefer to choose their own hours and the clients they’d like to have. If that’s you, then explore the bookkeeping business opportunities available.