In an earlier post, we discussed the role that financial management plays in your small Connecticut business, highlighting the main financial aspects that a small business owner should at least be somewhat knowledgeable about.
Financial management is viewed and handled different in large businesses, but one thing remains the same; an organization’s financial management plays a critical role in the financial success of a business.
A common misconception throughout larger organizations is that financial management is only apparent within the accounting department. While this department maintains the overall big picture of a company’s finances, data from each department all contribute to this big picture.
For example, each department within a large business should have a budget to determine how many employees they can hire, for what purpose, and at what salaries. Also, employee expenses such as travel, fixed assets, and training opportunities should be considered and budgeted for per department.
One department within your business that is generally the most responsible for income is the sales department. Due to this, the sales department should have a good handle on potential income through projects that are pending or secured and on the schedule. Another department that has equally serious expenses is the marketing department.
After taking a look at the departments of your company, it’s important to ask yourself if it would be appropriate for the accounting department to create the budgets, decide on the salaries of the employees, and collect income projections from every department. Chances are it is not.
The primary goal of financial management within a large business is to minimize risks for the organization by implementing strategies that help the company to counteract unforeseen liabilities. At Sinclair Risk & Financial Management, our team of seasoned and talented professionals will gain a full understanding of your management philosophy, goals, and individual risk tolerance. For more information, contact us today at (877) 602-2305.