An Accountant Can Be a Financial Leader

Recently I had an interesting e-mail exchange with one of RCI's corporate marketing managers, which led me to briefly explore the role of finance in small businesses. In considering this role I think it is important for everyone involved in RDI to understand the definition of finance and what it means. Essentially, finance is a strategic planning element for any large or small company. With an accurate and complete understanding of finance, any business can optimize its profit potential. The key to making finance work for a business is a solid understanding of its internal processes, as well as the external financial environment.

The current venture was launched on December 27, 2003. At that time it had a reported number of ten (10) employees. From the time the company started generating revenue, the number of employees has increased to about twenty (20). From the time the company reported its first quarter of 2011, the number of employees has increased to about forty (40). From the current financial highlights, RCI Finance CZ reported a net profit increase of 8. 1956%. This company is a publicly traded company whose market capitalization is approximately $15.5 million.

Cash management is one of the core functions of the company. The ability to manage and hoard funds is a key skill for all finance leaders. The ability to properly manage and distribute cash between investing activities and payables is an important factor in the success or failure of a company. The ability to see the big picture is an important skill for CFOs. The ability to accurately forecast future sales and expenses is essential for a responsible finance CFO.

The ability to forecast the income of a business will be a major factor in the long term viability of that business. A CFO must have experience in business due to years of working with other financial businesses. It takes a long term view to manage a finance department. Managing customers is the most important responsibility of a finance chief. The ability to anticipate customers' needs will help to determine the amount of funding available. Proper cash flow forecasting can help managers reduce financing costs and improve cash collections.

The ability to communicate with customers is a valuable skill for CFOs. Communication is a tool used by a business to keep both parties informed of changes. Properly communicating with customers will enhance a company's ability to successfully handle changes and meet customer needs. Customers are always satisfied when they receive the goods or services that they have paid for. When a company makes mistakes or does not meet customers' needs, the customers often voice their opinions through customer complaints. This results in lower profits for the company.

In order for a company to survive and continue to grow, a CFO must be an effective communicator and have extensive business experience. A CFO must have a good sense of how the finance department operates and how each part of the organization operates to provide the best products and services. Financial accounting is a science that involves many different aspects and it requires an experienced professional to effectively perform the various tasks involved. If you are considering hiring an accountant, it is best to get a CFO with years of finance experience to assist you in building your business and increasing your revenue.