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5 THINGS ALL PROFESSIONALS NEED TO KNOW ABOUT FINANCE

For individuals in non-Financial roles who want to understand how their decisions affect the financial performance of their organization as a whole, gaining key Finance skills is vital.  There are 5 of the most important things that all professionals in non-financial roles need to know about Finance 

Finance Concepts, Systems & Jargon

There is nothing worse than being in a discussion about a project at work, and not knowing what your colleagues are talking about! The language of Finance does not need to be daunting, and gaining an understanding of the common concepts, systems, and definitions used by Financial colleagues will give an essential insight into company plans and priorities. A basic understanding is helpful for everyone from accruals, statements, and adjustments, to reports, records, and turnover. 

Interpreting Financial Statements

Understanding the implications of an organization’s financial statements will provide insight into where things are going well, and where they can be improved. Whether someone works in the Finance Department or not, it remains a responsibility to work towards the financial success of the organization. A comprehensive understanding of the financial performance of a company, and the ability to analyze this, will give all individuals the skills necessary to plan, implement and review changes. 

Business Planning & Budgeting

Planning and budgeting go hand-in-hand, so whatever someone’s role, an understanding of the financial context that he is planning in is essential. Plans can be acted upon more quickly when budgets are agreed upon and understood from an early stage. Moreover, the ability to cooperate effectively with Financial colleagues and oversee a project within budget demonstrates this competency and will support career progression.  

Investment 

Knowing where an organization is investing indicative of where the company is likely to go in the next quarter, year, or five years. Knowing this helps all individuals focus on how their day-to-day activities promote this goal. Likewise, an awareness of where funds are being invested gives individuals the opportunity to offer informed suggestions for change if the return on investment is not living up to expectations. 

Diversifying Finance – You Know More Than You Think

Finance can seem daunting, but individuals in non-Financial roles can offer a new perspective to business calculations and numbers. Always remember that the numbers of the Finance Departmentreflectsomething far more real in the business, that you have probably been on the front line of yourself – always voice your opinion, and ask for clarification if you need it!

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Written by Edward Faulkner

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