Although small businesses don’t have the resources to have a finance department that has a large number of employees, it is important that the finance teams’ goals and objectives go beyond accurate record keeping. Here are some key goals and objectives for any finance department.
Strategic budgeting – Budgeting is an important role and involves estimating revenue based on demand forecasting. A finance team should provide budget projects that provide information to the management to set target profit goals, overheads, and spending.
Cost containment – To receive the best quality and lowest price for materials, supplies, and services, your finance team should receive multiple bids for large purchases. It is also important that vendors, suppliers, and contractors rebid their contracts each year.
Cash flow management – A business should know when their bills are due and when to expect payments from their customers to have sufficient cash on hand. Finance should help the business manage the business’s working capital and credit so that the company can pay its bills on time.
Debt service – Debt that is out of control can have serious long-term implications on business. It is important that the finance team keeps a close eye on interest rates and maintains healthy credit scores.
Tax planning – A efficient finance department will not wait until the end of the year to find out the business’s tax liability. Push your finance team to include proactive strategies that will lower your tax burden and your payroll taxes.