Why work in Finance? Roles, responsibilities, and skills explained

What is finance?
Differences between finance and Accounting
Core responsibilities in finance
Why do finance professionals love their jobs?
Necessary skills for finance jobs
Summary

Finance involves more than just managing complex numbers and calculations. It plays a crucial role in the management of a business and significantly influences the future of a company. In this article, we'll unpack the ins and outs of finance, exploring the difference between accounting, diving into job satisfaction, necessary skills, and its pivotal role in business growth.

Finance is responsible for the strategic management and planning of a company's future cash flows. It focuses on raising the necessary funds for business operations, planning and managing their use, and includes tasks such as formulating financial strategies, budget management, funding, and asset management. These activities are crucial as they oversee the overall flow of money within a company, forming the backbone of corporate management.

For instance, when a company plans to develop a new product, the finance department calculates the required funds for development, production, transportation, and management. They plan how to obtain these funds, negotiate loans from banks and financial institutions, and manage the acquired funds. Finance also handles budget allocation, and planning costs for packaging design and marketing. Thus, finance is not just about number management but is closely related to business planning and management.

Finance also involves analyzing financial statements prepared by accounting, and devising financial plans crucial for business management. Overseeing the overall cash flow helps prevent shortages of working capital and budget deficits, averting bankruptcy risks.

In summary, finance is not merely about managing numbers; it deeply engages with business management, significantly contributing to corporate growth, and plays a vital role. Currently, there is a shortage of finance professionals, making it a seller's market. Many companies seek experts with advanced knowledge and experience, especially those aged 35 and above. This creates a favorable situation for finance specialists considering a career change.

Although both deal with money, finance and accounting serve distinct purposes. Accounting focuses on past financial activities, like recording transactions and preparing financial statements. In contrast, finance looks ahead, managing funds for future projects, including fundraising, budgeting, and strategic planning. While smaller businesses may blend these functions, larger enterprises typically maintain separate departments for accounting and finance.

Although finance and accounting are both back-office roles, finance closely involves formulating business plans. In small companies, one person may handle both finance and accounting, but typically, specialized departments or dedicated personnel manage these tasks separately.

Finance encompasses various tasks, including:

Developing financial strategies: Planning where and how to gather and use funds. It requires cooperation with management to develop realistic and effective financial strategies.

Budget compilation and management: Allocating budgets to each department based on financial strategy and ongoing management.

Funding: Raising external funds for business expansion or new product development, including negotiating bank loans and issuing stocks or bonds.

Asset management: Managing surplus funds through investments and M&A to enhance corporate value.

Investor relations and audit responses: Explaining business and financial information to investors and responding to external audits of financial documents.

Internal control (governance): Establishing internal rules and systems for all employees to comply with business activities, ensuring adherence to these rules, and preventing compliance violations.

These tasks are crucial for maintaining the financial health and growth of a company, requiring the finance department's expertise and efficient operation.

Working in finance offers deep involvement in a company's future growth, providing high levels of job satisfaction due to:

Close involvement in management: The finance department plays a central role in shaping a company's future through funding and budget management, offering significant satisfaction and achievement.

High market value: The high expertise required for finance makes the job valuable in the market, offering opportunities across various industries.

Diverse career paths: Careers in finance can lead to roles in business planning, management positions, or becoming a CFO. Specialization can also lead to independent ventures.

Finance specialists, by utilizing their expertise in critical tasks, find significant job satisfaction. The diverse career paths available make finance an attractive profession.

Finance jobs require specific skill sets essential for daily operations:

Knowledge of bookkeeping, accounting, and finance: Accurate recording of transactions and management of financial status require knowledge in bookkeeping and accounting. Understanding and implementing funding and asset management strategies necessitates financial knowledge.

Legal knowledge: Smooth collaboration with the legal department and maintaining legal compliance requires knowledge of corporate laws, accounting principles, and tax laws.

Basic PC skills: Preparing documents using Excel and accounting software necessitates basic PC skills.

Logical analytical skills: Analyzing financial data to derive meaningful insights and devising effective strategies requires logical analytical skills.

Communication skills: Frequent collaboration with management and other departments requires effective communication skills to convey financial information clearly and share insights.

Presentation skills: Presenting financial results and strategies to management and stakeholders necessitates excellent presentation skills.

Discover the most in-demand skills and the latest salaries in finance and accounting in the Robert Half Salary Guide.

Finance transcends simple number management, deeply involving crucial decision-making that shapes a company's future. Responsibilities like planning financial strategies, budget management, funding, and asset management form the foundation for sustainable growth and stability. Finance professionals have diverse career paths, such as business planning, financial management, and becoming a CFO. Equipped with advanced knowledge and skills, finance professionals prove invaluable across various industries, becoming vital assets to their companies.

Robert Half is specialized in supporting professionals in finance and accounting. If you are considering a career change, explore job opportunities or submit your resume for consultation.

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