Administration and Finance Leader:
This activity usually has a bias on the part of the rest of the areas of the organization, the person who “sees the money”, however, and although the phrase is correct, there are a series of activities that are invisible to the rest of the collaborators. In a certain way, it is an absolutely critical function since it is the processor of all the information and commercial flows, and its job is to capture, process and report the results of these processes in a timely manner as required by the general management.
The Administration and Finance Leader is not always well understood by his peers
This role of control and norms is not always well received by more creative areas where control covers a small space in their way of seeing the work, therefore, some very common professional friction is generated. The personality of this leader must then be special, with temperance and zeal for intense rigor, but with the criteria of being able to “reconcile” with his peers in pursuit of a common good, as long as this is within a reasonable framework. Por esta razón este líder cumple muchas veces el rol de reemplazo natural de las altas gerencias. aFor this reason, this leader often fulfills the role of natural replacement for senior management.
For those who then assume that “he who sees the money” only cares about that, we must inform them that the correct term is working capital, a concept that refers to the economic resource that allows both purchases and the company’s fixed cost It is always financed, that the money is not lacking. This permanent analysis of the gaps between what I sell and collect against all obligations is a very stressful and daily task from which the rest only see final results.
Administration and Finance Leader
Another key activity is the recording of all these movements in an accounting that allows for comparative analysis of figures, where the sales and purchase budgets made by the other areas are reflected in their reality. Many times this generates new friction where each area defends its own figures and the administration and finance leader is the counterpart. Therefore, he must be one hundred percent sure of his figures in order to align the other areas. This requires a lot of analysis and previous contrasts, again invisible to the rest.
Management with other areas
When the above works well, accounting becomes a management and projection tool and sensitivity analysis on future closing scenarios, which helps decision-making on investment, purchases, taxes, etc.
Depending on the size of the business, it is very common to find that this leader must manage the areas of human resources or people management, for which he must have a permanent update of the current labor regulations together with security controls, that is, he must ensure that the remunerations are correctly applied, that the contracts are updated, that the security measures are of normal use, since each one of these elements that are out of norm imply fines and punishments from the supervisory entities. Therefore, here as in many activities of this leader there is little applause and there is a high risk of calls for attention when a procedure is not followed.
More activities than they seem: Administration and Finance Leader
In tax matters, it must always be updated, because according to the changes in regulations in each country, a business could go from being profitable to having losses only due to a mistaken application of the appropriate regulations.
In tax matters, it must always be updated, because according to the changes in regulations in each country, a business could go from being profitable to having losses only due to a mistaken application of the appropriate regulations. And also have a number of natural contingencies of any organization. And as always without losing sight of any of the initial points mentioned.
I repeat, this leader must have a deep closeness to order and temperance, only then will he be able to make his function a role of personal and professional excellence.