Financial affairs manage money that companies are going to use in the future whereas accounting jobs involve managing money that has already gained or lost such as making statements of accounts. Financial affairs involve the following work:
1. Managing finance within the company.
Financial affairs help finance flow money smoothly just like blood in our body circulates without delay. They need to know exactly what each department used its expense for. They may raise funds outside the company if the budget is too low. They should never delay any payments to avoid loosing face.
2. Raising funds.
The capital, a business core for registered companies and corporations that are more than a certain size is usually managed by means of ‘shareholder’s equity’ that issues shares, ‘a corporate bond’ that raise funds from the capital market, and ‘loan’ that borrow money from financial institutes.
Financial affairs role is to raise funds from any fund providers to maintain a good financial situation by securing the company’s positive image.
Managing the healthy financial situation in order to maintain deals with other companies and proceeding with sales management to each fund provider are also their role.
3. Planning and executing financial strategies
Fund raising is depending on the company’s image, trust, and future.
Financial affairs need to keep on improving fund-raising strategies by maintaining the healthy business using financial strategies. It is difficult for companies consisting of businesses that are not going to make profits to raise funds. Financial strategies based on business strategies need to be feasible.
Some companies might not have financial affairs, instead accounting departments, general affairs, etc could be in charge of the task. If you don’t have experience yet are planning to work in financial affairs in the future, it’s recommended to at least understand the difference between financial affairs and accounting departments as it is explained above.
Finance department or function could be independent or included in Accounting department.
Finance department required you to have skills
・ Analysis present and previous figures from FS
・ Have management mind
・ Look over company’s future
・ Be sensitive for figures
・ Have logical thinking
・ Professional knowledge about finance and accounting