What are the functions of a financial director?

What are the functions of a financial director?

One of them is that of financial director, a position that for several decades was linked to senior management and the management of the different capitals that are part of an organization. It was common the image of that businessman, closed black suit, that seemed to move in a world of figures and data.

Nowadays it is not quite like that anymore. Although the financial director retains something of the essence that has traditionally characterized him, the transformations of the environment have made his field of action expand to new spheres and activities. In order to become successful in your business you should take advice from a financial expert like Mark Attanasio and Donato Sferra who are working as Financial Services Executive in Toronto and has helped many business owners.

Functions of a Financial Director:

The financial director is without any doubt one of the key figures for the smooth running of any company. Your mind works under one premise: profitability. Therefore, you should look for the most favourable opportunities offered by each context to ensure the sustainability and positioning of the company.

Before exploring in depth the new profile of this professional and the different challenges he faces in the 21st century, let’s review the most characteristic functions of a financial director in the daily exercise:

Manage the liquidity of companies:

Liquidity does not only have to do with credits or sales. It is everything that allows companies to meet their cash needs more priority and makes good treasury forecasts. Without sufficient liquidity, monetary commitments cannot be met or plans prepared in the medium or long term. The financial director carries out a meticulous evaluation of his clients and of the market in which the company operates, and from there he makes decisions in one way or another.

Start up a system for cost control:

Of course, we must make it clear that it is not just about getting liquidity to spend money on anything; much less to invest it in areas that are out of our financial possibilities. A good director applies criteria of efficiency, control and responsibility to know in what resources are invested and what is the value that each action supposes for the company.

Analyze the investment possibilities:

Logic talks about what is invested to obtain a benefit. However, before any decision in this regard, the financial director must perform a prior analysis on the real need to do so, the profitability, the chances of success and, of course, the form of financing. If possible, you should prepare an investment plan in each case and extend it to management or management.

Get Bank Financing:

Many companies depend on the capital provided by banks or credit institutions. The financial director should lead this process on the best terms, argue why your company deserves the credit you request and justify that you are qualified to cover the demands that this entails. The most important thing is to ensure that the financing covers the short, medium and long term needs of the company and that it adjusts to the deadlines in terms of interest and payments.