Get to know Financial Administration in Business

Get to know Financial Administration in Business

Get to know financial administration in business, financial administration plays an important role in business. People who work as financial administration are closely related to the resources of a company. But not a few people think that the job of financial administration is making payments or anything related to money.

Nowadays business or business competition is getting tougher and fiercer. If you want the company to grow rapidly, then you must find reliable and competent employees to fill financial administration positions. This is because one of the jobs for a financial admin is to manage the income and expenses of a company. Then, what exactly is the meaning of financial administration itself? What are the job desc of the finance admin? Here’s the full explanation.

Definition of Financial Administration

financial administration in business

Basically financial administration is a form of activity or business that is carri out to help, organize, and serve company activities so that they can be achiev according to their goals. The position of financial administration is need by the company. This is so that the company can manage its finances properly. In addition, the notion of financial administration is divided into a broad understanding and a narrow understanding.

In a broad sense, financial administration is a guideline that is closely related to the use and implementation of existing funds in an organization or company to produce activities. This includes managing finances such as planning, regulation, accountability, and financial supervision. In a narrow sense, financial administration is all activities related to recording, data collection, and expenses to fund the company’s operational activities. This includes managing finances and accounting.

Benefits of Financial Administration

After understanding the meaning of financial administration and its functions, of course we also need to know what are the benefits of financial administration. In general, there are at least three benefits of financial administration, namely:

  • Recording of receipts and expenses of an organization becomes more regular
  • The use of organizational funds becomes more controlled, more coordinated, and more beneficial
  • With financial administration, the potential for errors in making financial reports can be minimized

Financial Administration Function

Referring to the meaning of financial administration above, the functions of financial administration in general are as follows:

1. Investment Function

The investment function in this case is all fund management activities into assets that are used to achieve organizational goals. Investment can be obtained from the organization’s capital or from outside. Investments can be divided into two groups, namely:

  • Short-term investments, such as cash, receivables, inventories, and so on
  • Long-term investments, such as land, buildings, production equipment, vehicles, and so on

2. Functions to Seek Funds

In this case the function of seeking funds is a function of seeking capital to finance all activities carried out by the organization. In addition, it also functions to sort and select various sources of funds that are appropriate for each type of need.

3. Shopping Function

These are all activities related to the use of funds used to finance all activities, both own funds and external funds. In other words, the spending function here is related to the production process as well as supporting the production process.

4. Profit Sharing Function

This is the activity of making and determining the rules in the distribution of business profits. The profit-sharing function can also be included in the fundraising function. In a sense, the company seeks to develop the company’s business from the company’s own funds.

Fundamentals of Financial Administration Management

Companies that want to gain success in managing their business need joint activities that must be carri out in every company activity. Finance is an important factor in the success and support in reminding a business or business. In a company, finance is us for the company’s operational capital, both for production, buying raw goods, promotion and marketing, struggles and labor.

Management of financial administration in a business includes the following:

  • Receive, prepare money, and carry out the administration
  • Prepare complete proof of receipt of financial expenditure in accordance with regulations
  • Prepare cash reports
  • Examining the completeness and evidence of financial accounting
  • Organize and manage financial administration processes in accordance with applicable procedures
  • Store and maintain all accounting documents regularly

Corporate Financial Administration Duties, a company administrator (staff) performs administrative and budgetary tasks in general, financial administration tasks include:

  • Manage correspondence
  • Record transactions of goods and services
  • Record reconciliation and closing financial transactions
  • Make payments and bills
  • Do the budgeting

Financial Administration Objectives

Financial administration activities can run well if there is cooperation between parties who have authority and responsibility. Although the purpose of financial administration is to organize and process company finances, there are other goals that you need to know about, namely:

1. Create a Financial Plan from Scratch

The first goal is to make a company financial plan. This includes income, disbursement of funds, and loans. All of these financial plans must be made in a structured and systematic manner and must be made based on the results of financial statements in the previous year or prior periods.

2. Make Financial Reports

The financial admin job desc is to create and compile financial reports in stages. Reports can be daily, weekly, monthly and even yearly. Later, these financial reports are made bas on incoming and outgoing cash flows.

‍3. Managing Money or Capital

Furthermore, employees behind the financial administration profession must be responsible for making reports on withdrawing funds or depositing capital, opening new accounts, determining the amount of money deposited, and also recording all company money transactions.

‍4. Managing Credit Loans

Employees in the financial administration division will be given the duties and responsibilities of paying bills relat to company debts. In addition, they are also responsible for managing the company’s loan capital.

‍5. Creating and Arranging Financial Budgets

One of the financial admin job descriptions is to compile the company’s financial budget policy. Employees who occupy financial administration positions must be good at communicating with other divisions regarding budget requirements that will later be spent.

6. Manage Company Securities

Financial administration employees are also involv in managing the company’s securities. The financial admin job desc is to keep records, check cash back capital activities, to store securities in accordance with applicable regulations and policies.

You need to pay attention to whether the employee who fills this financial administration position has basic knowledge of securities and filing or not. Don’t make the mistake of hiring employees who don’t have the skills and knowledge.

‍7. Simplify the Process of Paying and Entering Company Money

The financial admin job desc is to simplify the process of spending and entering company money. To facilitate transactions, employees in the financial administration division must ask for evidence that can be account for from the party requesting the budget. Managers also need to know the financial condition of the company.

So, that’s the discussion regarding financial administration and the financial admin job desc in the company. Make sure you place a competent candidate for this important position. Don’t make the wrong choice that could result in company losses.