Large companies are demanding more and more professionals capable of performing multitasking besides of deep expertise and specialization in something specific, such as MSc in Banking and Finance, for example.
Workers need to have technical and financial applications because the future is for them, for those who are experts in finance, mathematics, statistics and econometrics. They are supposed to have a strong foundation in the principles and practice of finance, and are able to use the latest techniques and tools to analyze a certain situation and make a final decision.
Moreover, in a global environment where the companies have the opportunity to, not only attract potential customers but also to create synergies with other companies, employees with global capabilities to work anywhere, to communicate and decide the best options for the companies, regardless the country, have an advantage over their competitors.
Why the Companies Need Financial Experts
Most of the decisions reached in a company are at least partly financial, because they require tradeoffs between costs and distributed benefits over time. Hence, in large companies, almost all executives, from the CEO to the managers of production units, marketing units, research laboratories and other departments, use the services of financial experts.
“The financial manager plays a crucial role in the operation and success of businesses.”
The role of finance ranges from budgeting, forecasting and cash management to the investment analysis and procurements funds.
Since the majority of business decisions are measured in financial terms, the role of the financial manager in the operation of the business is vital, as well as all those areas that constitute the business organization records, manufacture, market, personnel, research and others, require a minimum knowledge of financial management function.
The importance of the finance function depends largely on the size of the company. In small companies, the finance function is often carried by the accounting department, but as the company grows, you must create a special department to work the financial area.
The Important Role of the Financial Manager
The financial manager must master the fundamentals of both economics and accounting. He must know the context of prevailing economic reference, changing levels of economic activity and policy changes for some countries.
The global market should question the future financial manager about the important role it plays in business and in the business environment, and the need to anticipate events that may affect the financial stability of the organization.
In the case of financial projections, financial must calculate the cost that may have an incorrect projection in sales or illiquidity in the organization to meet its cash expenditures, and importantly, the tax, fiscal and monetary changes can fully deflect the projection.
“Financial must stay tuned to the global economy and determine how the company can be affected to changes in international markets and the effects on exchange rates, inflation and interest rates.”
It could be concluded that the role of the financial manager is growing and increasing its importance in the market. This is due to the large business changes that lead companies to look for a better way to financial statements: improving their financial projections; having a good credit management and evaluating their cost of capital against its assets and profitability; and implementing all financial tools necessary to defend, maintain and compete in a global market.