It can hardly be argued that the creation of a financial department of a commercial structure is a very responsible task, because its functionality is periodically expanded. As a rule, its elements are formed on the basis of those tasks, the solution of which should be directly addressed Head of Financial Department. Which of them are relevant today? What are the responsibilities of a leader? What information does his job description contain? If you wish, you can find the answer to these and other questions in the article.
Functionality of the financial service of the enterprise
Initially, it should be noted that the tasks that are formed on the basis of the functions listed below must be solved directly by the head of the financial and economic department, therefore he needs to know the functionality without fail. What does the financial service do?
Firstly, it is controlling in the financial sector, which consists in creating certain plans and exercising control over their quality execution. It is important to note that it is closely interconnected not only with analysis and accounting, but also with the control of competent execution of various business tasks of the commercial structure.
Additional functions
The second function of the financial service of any enterprise is the Treasury, which implies the management of the enterprise’s money, the creation and subsequent maintenance of a payment calendar, as well as direct control over the state of various levels of mutual settlements. By the way, it is impossible to overestimate the functionality of the Treasury. The final function is the organized formation and further accounting.
Job description of the head of the financial department of the enterprise
Before proceeding to the consideration of the job description of the head of the financial department of a commercial structure, one nuance should be clarified. If the head of the financial department of the company is directly the financial director, then his activities can be regulated through the appropriate document. If the financial department is an independent unit, then the instruction (official) of the head of the financial and economic department It is developed taking into account the application of the general algorithm for creating such business papers.
Algorithm: General Provisions, Requirements and Responsibilities
The general algorithm for the formation of job descriptions usually includes the following elements:
- General provisions - include a description of the document, an indication of the position for which the employee is taken. Appropriate in this case Head of Financial Department.
- Current requirements for qualifications. Among them, the level of education of the employee, a set of skills and abilities that are necessary for the performance of official duties.
- Job description of the head of the financial and economic department also includes job responsibilities. It is important to note that this section must be filled in as much as possible. This should be done so that the employee has fewer questions about certain tasks that a specialist should perform.
Success criteria and employee rights
In addition to the points above, instruction of the head of the financial and economic department includes the following components:
- Criteria for success in terms of job performance.It should be noted that this section is rather complicated in relation to filling, because the formation of these criteria is far from always possible. In addition, it is important to consider only those criteria, the implementation of which is fully subject to monitoring.
- Also job description of the head of the finance department contains information about the rights of a specialist. In this section, the duties of the enterprise to the employee are presented directly. Among them, as a rule, are timely salaries, high-quality organization of the workplace and, of course, infrastructure in terms of technology, as well as absolute adherence to standards in terms of sanitation.
Authority of the head and responsibility of the employee
Additional elements of the standard job description:
- The section arguing for the rights and obligations of the head, by its structure, is some addition to the previous one. It contains explanations regarding the authority of the leader of this specialist.
- Responsibility of an employee implies a description of what the specialist is responsible for, and contains information about possible penalties if they are not enforced duties of the head of the financial department.
It should be noted that the implementation of the effective activities of the financial department is impossible in the case of a poor-quality information system!
General Provisions Detailed description
In accordance with the general provisions of the job description, Head of Finance and Economics must have a higher professional (engineering-economic or standard economic) education, as well as work experience in the specialty (organization of financial activity of the structure) for at least five years. In addition, an employee of this category must know:
- Legal acts in terms of regulations and legislation that regulate the activities of the structure regarding the economy and production.
- Regulatory and methodological information that directly relates to the financial operations of the company.
- Prospects for the development of the structure.
- Actual state, as well as development prospects in relation to the markets for manufactured products or services, as well as financial markets.
- Technologies affecting manufacturing processes.
- Competent organization of financial activities in the company.
What does a financial services manager need to know?
In addition to the points above, Head of Financial Department must know:
- The current procedure for the formation of plans for the finances of the enterprise, as well as forecasts in relation to the sale of products or services.
- A set of techniques and levers that provide direct control of financial flows.
- The current procedure in relation to financing from the state budget, lending both in the short and long term, attracting investments, as well as using own funds and the purchase of various kinds of securities (stocks, bonds).
- The current order of distribution of financial resources, as well as identifying the effectiveness of investments.
- Rationing in relation to current assets.
- The current order and, accordingly, the forms of financial settlements.
- Legislation in the field of taxation.
- Standards for financial accounting and reporting.
- Economic processes, organization of production operations.
- Bookkeeping.
- A technique for computing, the basics of working with it.
- Provisions for labor law.
- Rules and regulations in terms of labor protection.
Head of Finance: Responsibilities
The job description indicates the following duties of the head of the financial department of the enterprise:
- Organization of management in relation to the movement of financial resources of the company and competent regulation of relationships in the field of finance, which, as a rule, arise between business entities in market conditions. This must be done in order to maximize the effective use of various components of the resource potential of the enterprise during the production process, as well as the implementation of the manufactured product or services to obtain the maximum amount in profit.
- Ensuring the development of a financial strategy for the structure, as well as its financial stability.
- Guidance on the development of projects of both current and future financial plans, as well as forecasted balances and cash budgets.
Tasks of the head of financial services
What else is committed to do Head of Planning and Finance Department? The components of its activities, as a rule, include the following items:
- Ensuring that financial values that have already been approved are communicated to the relevant divisions of the company.
- Active participation in the development of projects in relation to the planning of sales of manufactured products or services, capital investments, research and innovation in the scientific field, planning regarding the cost of the product, as well as the profitability of production itself.
- Direct participation in the calculation of profit and, of course, income tax.
- Identification of sources for financing the company’s activities in the production and economic terms (budget financing, lending in the short and long term, the formation and purchase of securities, financing for leasing operations, borrowing, efficient use of own financial resources).
What else does the head of the finance department do?
In addition to the duties listed above, Head of Financial Department obliged to carry out the following paragraphs of the instructions:
- Conducting research and a detailed analysis of financial markets, assessing potential risks in relation to managing financial flows, developing proposals to minimize these risks.
- Implementation of the policy in terms of investments, as well as competent management of the assets of the structure (determining their optimal composition, preparing proposals for the replacement or liquidation of active funds), analysis and the formation of an appropriate assessment that determines the effectiveness of financial investments.
- Organization of the development of working capital standards, as well as measures to significantly accelerate their turnover.
- Ensuring the timely receipt of income, processing banking and financial transactions on time, paying the bills of contractors and suppliers, paying off various types of loans, paying bank interest, salaries to employees, transferring tax payments to the budgets of the federal, regional and local levels, as well as to extrabudgetary state funds of a social nature.
Additional duties of the head of the finance department
The following items are final in the list of duties of the head of the financial service:
- A qualitative analysis of the economic and economic activities of the structure, participation in the formation of proposals aimed directly at organizing the solvency of the company, preventing the creation and exclusion of inapplicable valuables of a material and material nature, maximizing profitability in relation to production processes, increasing profits from sales of products, significantly reducing costs as in production plan, and in relation to product sales, strengthening discipline in relation to finance.
- Exercising control over the implementation of financial, implementation, profitable and other plans, stopping the production of a product that has no sales, competent spending in relation to the financial resources of the enterprise and the targeted use of both own and borrowed working capital.
Final chord
Another important duty of the head of the financial service of any commercial structure is to maintain records of the movement of financial assets and generate reports on the basis of all kinds of financial transactions in accordance with current accounting and reporting standards, as well as the reliability of financial information. In addition, the head of the financial department exercises control over the correctness of reporting documents, the timeliness of their submission to both external and internal users. And of course, this employee most effectively manages the financial service specialists.