Functions and duties of financial administration in the company, Functions and Duties of Financial Administration in the Company: In general, the task of financial administration is to manage the finances of a company or organization. But in fact, there are several divisions of other tasks that support the activities of managing financial transactions as a whole.
Definition of Financial Administration
Administration is a series of activities carried out in the framework of carrying out a policy with the aim of achieving certain goals. In this way, financial administration is a series of activities carried out with the aim of achieving the objectives of financial affairs.
In a narrow sense, financial administration is always related to data collection, record keeping, and managing the flow of funds. More broadly, administration is understood as the part of the company that manages funds as a whole in the form of planning, monitoring and others.
Within a company, financial administration has a role as a manager of financial affairs such as planning regulations, monitoring funds, accountability, and others. The role of financial administration is very important because it has the power of recording and data collection on the flow of money in a company.
Financial Administration Function
There are four financial administration functions that form the basis for a company in managing every financial transaction.
1. Investment function
The investment function includes managing a company’s funds in various activities that support common goals.
2. Fundraising function
The second administrative function is the function of seeking funds. This includes determining the source of funds and also the search for capital needed by each company.
3. Spending function
The scope of the expenditure function includes the use of internal and external funds to support activities within a company.
4. Profit sharing function
The function of profit sharing is the function of developing every business that the company does to gain profit.
Functions and duties Administration Staff
Financial management is a special task, of course different from accountants. If accountants are only concerned with company financial calculations until the analysis is clear, then financial administrators tend to be more commonplace. The following are administrative functions and duties.
1. Create a financial plan
You need to develop a company financial plan. Start with loan planning, cash out, and repayment of debts that are due. Usually, companies will ask you to make financial reports on a regular basis. Companies usually ask financial administration to carry out their duties in knowing the amount of the budget and income that has been received.
A financial plan consists of many elements, including income, expenses, payments, loans, etc. These elements are formulated in a systematic and structured manner. The preparation of this design is usually based on reports or files from the previous period. To perform such a task requires careful and sharp analysis. In order to align the budget with the company’s vision and mission, the administration must continue to consult with superiors.
2. Prepare financial reports
Making this report is the main task of financial administration. Regular compilation of daily, weekly, monthly to yearly. Everything is based on activity or cost inflows, outflows, accounts payable, etc. In addition, there are various types of financial reports, such as income statements, balance sheets, end of period reports, etc. Of course, everything is based on facts and evidence of existing transactions in order to create credible and responsible reports.
Therefore, the report must be made not only once, but also several times, and the format is according to the period. The company’s financial administration will standardize financial processes. Starting from opening a new account, determining the amount deposited into the company’s account and recording all of the company’s cash flows. The next responsibility of the company’s financial management is to understand the funds that the company lends. The goal is to pay off debt before maturity.
3. Manage cash
Company cash management is usually also a financial administration task. What must be done is to report incoming and outgoing cash activities, open accounts, determine the amount of deposits paid, and record every transaction involving company cash.
As a financial administrator, you must be able to formulate company financial budget policies. This means that you have to communicate with other departments about the budget requirements that will be issued. In addition, you also have the right to determine the return on investment based on the funds spent. This means that you have the right to ask what results have been achieved by submitting a budget.
4. Manage credit
In addition, financial administration also manages credit that becomes a burden within a company. Usually related to billing and paying company debts along with remembering the payment deadlines that have been determined to be paid immediately by the company.
5. Manage company securities
It doesn’t stop there, the financial administration department often handles company securities. Given that every institution always buys and sells securities to get additional capital and cash. The tasks performed for this include keeping records, checking cash back fund activities, and storing securities in accordance with applicable regulations. No wonder this requires special skills, such as knowledge of the ins and outs of filing securities.
6. Establish communication with related parties
Communication is very important for all departments and financial managers in an organization or company. The goal is to disseminate all information relating to company activities and communicate it to employees correctly and accurately. For the financial side, the most important thing is to communicate with management and superiors to discuss budget issues, report financial flows within a certain period, and so on.
For this, good communication skills are needed. According to this detailed information about financial management responsibilities, they are an important part of the company. They must work hard, be flexible, and be sincere in carrying out their duties to the best of their ability in accordance with the vision and mission of the company.
7. Archiving Function
Recording proof of payment from customers along with transaction document files that are us to maintain management orders and provide convenience later when need. Then, the last thing is to do a financial analysis and report it to the organization.
That is an overview of the functions and duties of financial administration. Therefore, you must understand that this is the biggest responsibility as a financial administrator. In addition, you must be able to qualify to be part of the financial administration. Are you ready to become a reliable treasurer? Come on, join and become the trusted financial manager you dream of. Career spirit!