Finance officers can be an integral part of an organisation, providing specific financial expertise that is often essential for the growth and success of an organisation. In this article, we will discuss what defines the role of a financial officer, identifying some of the key skills required and why CPD training is so valuable for finance officers.
What does a finance officer do?
Finance officers are responsible for financial management, strategic planning, safeguarding of funds and analysis of cashflow. The Chief Finance Officer (CFO) of an organisation will usually ensure sustainable financial practices are maintained, as well as highlighting any financial deficiencies, and providing strategic solutions.
An effective financial officer provides numerous benefits to an organisation and plays an integral role in managing growth and development. Finance officers keep track of the money a business makes and spends. They are also responsible for an organisation’s taxation, including allocating funds for future tax bills. Managing these aspects of a business are essential for compliance, growth, and overall success. A proficient finance officer can also make an impact through iterative analysis of financial activity, and subsequently implementing corrective actions to help an organisation consolidate its strengths and mitigate its weaknesses.
Key skills and expertise for finance officers
The role of a finance officer requires a reliable financial knowledge base, but also versatility and other wider professional abilities. As well as fundamental capabilities specific to finance, important skills may also include an acute attention to detail, a developed understanding of business operations, refined critical and creative thinking. Here are some key skills a financial officer should be continuously developing:
Financial analysis
The core function of a finance officer is the analysis of an organisation’s financial records and projections. It is integral to be able to analyse an organisation’s cashflow statement, balance sheet and income statement, and provide valuable insight. Finance officers are also required to be able to analyse financial information that may be specific to an organisation or industry.
Financial analysis is a skill finance officers should be constantly improving. The responsibility of an organisation’s financial outlook can determine the overall success of an organisation. Rigorous financial analysis can be a critical process in highlighting any potential problems or opportunities an organisation may encounter.
Financial strategy
As well as an ability to analyse an organisation’s finances, a finance officer is also required to provide strategic insights and solutions. An understanding of financial strategy can also improve a finance officer’s ability to analysis. Financial strategy focuses on both an organisation’s previous financial activity, as well as future outcomes. To provide valuable financial insight, professionals need to be aware of the current market and maintain a modern and relevant understanding of financial strategy. It is therefore important for finance officers to continually develop their strategic thinking and knowledge through an ongoing process of learning.
Presentation
Further to providing financial insights, a finance officer may also be required to present their findings in a legible and easy-to-understand way. Presentation of financial analysis and strategies can take many forms, and implementing this effectively should be recognised as a key skill for finance officers.
Financial data can be confusing for non-finance professionals. The ability to present this data in a format that communicates the key points a financial officer is trying to make can be a defining factor in their ability to be efficient and influence decisions in an organisation.
Taxation
Taxation is another important aspect of a finance officer's job. A deep understanding of taxation and financial compliance is crucial for overall organisation operations. It is also important to make sure that the organisation has enough capital to pay their tax bills when required.
Taxation legislation is idiosyncratic and constantly changing. Financial officers require a thorough understanding of current taxation rules and requirements, which should be consistently updated through professional education and learning.
Industry knowledge
As well as finance-specific skills, finance officers should also have a comprehensive understanding of the industry their organisation is operating in. Financial strategies, business structures and operating standards can vary across industries. A finance officer with a detailed knowledge of their current industry trends and developments can provide exponential value to an organisation.
Finance officers should be able to contribute valuable insight to an organisation through a specialised and up to date understanding of money, financial legislation and business practices.