5 THINGS ALL PROFESSIONALS NEED TO KNOW ABOUT FINANCE

Gaining key Finance skills is vital for individuals in non-Financial roles who want to understand how their decisions affect the financial performance of their organization as a whole.

Here are 5 of the most important things that all professionals in non-Financial roles need to know about Finance…

1. Finance Concepts, Systems & Jargon

There is nothing worse than being in a discussion about a project at work, and not knowing what your colleagues are talking about! The language of Finance does not need to be daunting, and gaining an understanding of the common concepts, systems, and definitions used by financial colleagues will give an essential insight into company plans and priorities. From accruals, statements, and adjustments, to reports, records, and turnover, a basic understanding is helpful for everyone.

2. Interpreting Financial Statements

Understanding the implications of your organization’s financial statements will provide insight into where things are going well, and where they can be improved. Whether you work in the Finance Department or not, it is still your responsibility to work towards the financial success of the organization. A comprehensive understanding of the financial performance of a company, and the ability to analyze this, will give all individuals the skills necessary to plan, implement and review changes.

3. Business Planning & Budgeting

Planning and budgeting go hand-in-hand, so whatever your role, an understanding of the Financial context that you are planning in is essential. Plans can be acted upon more quickly when budgets are agreed upon and understood from an early stage. Moreover, the ability to co-operate effectively with Financial colleagues and oversee a project within budget demonstrates your competency and will support career progression.

4. Investment

Knowing where an organization is investing is indicative of where the company is likely to go in the next quarter, year, or five years. Knowing this helps all individuals focus on how their day-to-day activities promote this goal. Likewise, an awareness of where funds are being invested gives individuals the opportunity to offer informed suggestions for change if the return on investment is not living up to expectations.

5. Diversifying Finance – You Know More Than You Think

 

Finance can seem daunting, but individuals in non-Financial roles can offer a new perspective on business calculations and numbers. Always remember that the numbers of the Finance Department reflect something far more real in the business, that you have probably been on the front line of yourself – always voice your opinion, and ask for clarification if you need it!

Credit: https://theect.org/5-things-all-professionals-need-to-know-about-finance/