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Administration and Finance Leader

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.

Working Capital

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.

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The importance of planning the year-end/beginning of the year

fenixcyc.clEvery year between September and October, large companies define their spending budgets and therefore what they will require from their suppliers of products and services. Therefore, companies of any size that are still in the chain should begin to adopt similar ideas.

However, this 2020 things have changed, new protocols have had to be taken to face the commercial world, especially in addition to the human conditions. Purchasing or consumption behaviors have new seasonalities, new logistics and demands.

At a general management level, this last quarter, it is urgent to take a fresh look at digital markets and trends, a survey conducted by us on linkedin http://t.ly/SqTB established as a general second priority to enter the world over cost savings and organizational climate, which shows that the perception of digital transformation has spread to all environments, although without a clear path.

Being able to segment markets into those that are safe and those with a future and thus generate loyalty activities is also relevant, since post-pandemic there are clearly areas of the economy that have been very hard hit by the change in behavior and the crisis, we must refocus our efforts on markets “with a future” and lastly, as a strategy, we must initiate the variabilization of fixed costs.

Financially, the administrators or managers must activate all the activities of financial shielding, the reality is that this crisis left many companies highly indebted with credits guaranteed by the state and whose payment burdens begin at the end of the year, this has generated a lethargic reaction of banks to renew the lines of working capital that the only thing that seeks is that the companies pass the stress test and thus renew who “supports the storm”. This is common in crises, but it seems that the lack of memory and novice companies in these periods make them rely more than necessary on these obligatory financial partners.

The finance manager should use all franchises to reserve resources for the eventual non-renewal of lines. In addition, the company will be able to take advantage of accounting and tax exemptions that will allow it to privilege future cash flows.

Commercially, the leaders of these areas have a great mission, to update the business models due to all the behavioral changes already mentioned, to use tools such as the canvas or other and to determine the new added values of the customers that have a future in the market with service and customer orientation. On the other hand, digital marketing activities emerge today no longer as a complement but as the spearhead of the commercial activity, due to the strong penetration of this world, omnichannel and content oriented to improve the customer’s shopping experience become even in the sales channel with more future than the face-to-face ones. Joining this trend is absolutely VITAL if you want to stay. Training salespeople on virtual tools, CRM uses, pipeline concepts, forecast applied in real life, must be on a daily basis. Of course you must also set your sales budget now on this new reality.

It is not a simple task to plan “this” year-end closing because in addition to the classic expense and sales budgets, tax, labor and accounting adjustments, we must make an adjustment of the business model, which if properly done could even give extreme options, from a total adjustment or an inevitable disappearance from the market because our added value has disappeared, the latter is hard but it is better to accept it and reinvent ourselves soon than after a long agony.

We are optimistic because human nature is resilient, and tends to adapt in surprising ways. So let’s plan ahead and see what 2021 brings.