The financial management function within a company is complex, covering planning, control, and the optimization of financial resources to ensure stability and growth. Specifically, it includes the following activities:
Financial Planning & Strategy
- Preparing the annual budget and financial forecasts.
- Financial modeling for different business scenarios.
- Setting financial objectives and KPIs.
- Analyzing the economic environment and external risks (inflation, exchange rates, interest rates).
- Financial support for investment plans, mergers, and acquisitions.
Financial Control & Analysis
- Assessing financial performance vs. budget and forecast.
- Identifying variances and proposing corrective actions.
- Preparing management reports tailored to the industry.
- Profitability analysis by business line, product, or location/region.
Treasury Management (Cash & Liquidity Management)
- Daily monitoring of cash flows.
- Managing relationships with banks and financial institutions.
- Optimizing working capital (clients, suppliers, inventory).
- Managing loans, credit facilities, and the cost of capital.
Investment & Financing Management
- Evaluating investment opportunities (ROI, IRR, NPV).
- Selecting financing sources (equity, debt, leasing).
- Negotiating financing terms.
- Monitoring the performance of investment projects.
Financial Risk & Compliance
- Identifying, assessing, and managing financial risks.
- Ensuring compliance with tax legislation and regulatory requirements.
- Implementing internal financial control policies.
- Conducting internal audits and providing support for external audits.
Optimization & Decision Support
- Digitalizing and automating financial processes.
- Implementing and managing ERP systems.
- Cost, pricing, and operational efficiency analyses.
- Providing support for top management’s strategic decisions.