Finance and Accounting Management ERP System Saudi Arabia is a key service of the company. It sets up tools to help with strategic decision-making and thus prevents financial risks. The financial department, generally supervised by an Administrative and Financial Director (DAF), helps to plan the development strategy of the manager or general management of the company.
Analytical Accounting and Financial Management
Cost accounting is an internal analysis of company finances. It makes it possible to measure the cost and added value of each operating unit, in order to validate their profitability. This is the primary role of the financial management of the company, namely to measure the profitability of each action in order to be able to take the appropriate measures: increase the production of such a product, stop the marketing of another, strengthen marketing on such an offer from the company’s catalog…
Financial Management and Business Strategy
More broadly, the financial management of a company checks that the expenses that the decision-makers want to incur to ensure the development strategy are feasible at the time T. If they are not, the role of the financial department is to determine the actions that will allow the company to find the balance. Thus, the financial department must ensure and verify:
- the company’s profitability, i.e. its ability to achieve enough turnover to be self-financing
- the company’s solvency, i.e. its ability to repay its debts and short, medium and long-term loans
- good management of the company’s cash flow, i.e. its ability to collect enough income to cover its operating cycle
Clearly, the financial management and its administrative and financial director (DAF) plan the company’s development strategy alongside the managers.
The Financial Management of the Company, A Multidisciplinary Role
But the financial management of a company also checks the correct application of the legal procedures applied in the company. It must know the economic and regulatory context in which it operates and anticipate the upheavals to come and their impact on the financial health of the company. In a very broad way, the financial management must know its market: the evolution of competitors, suppliers and all the players who gravitate around the company.
The Administrative and Financial Director (DAF), A Cross-Functional Role
It is alongside the manager or the decision-making body of the company that the administrative and financial director (DAF) evolves. The latter draws up reports and gives its opinion before each management decision is taken. It also monitors the consequences of each of the actions taken to measure their profitability. The administrative and financial director plays a key role in risk management.
In conclusion, the role of financial management is crucial to ensure the sustainability of a company. It intervenes upstream and downstream of each management decision and proposes corrective measures in the event of financial problems. The administrative and financial director (DAF) is a sort of safeguard; guarantor of the company’s profitability. He supports the manager on a daily basis.
Chief Financial Officer: What Missions and Responsibilities?
The Administrative and Financial Director (DAF) works closely with the manager or the company’s general management service to consider its strategic and financial development. The mission of the DAF is indeed to control the profitability and solvency of the company, to anticipate its development strategy and the necessary financing and investments. The administrative and financial director also represents the company during bank negotiations or with the authorities. The CFO is responsible for the administrative and financial management department, which generally includes several employees. To become CFO, a Bac +5 level and good professional experience are necessary.
The Administrative and Financial Department
The finance department is a bit like the company’s financial risk prevention department. Its role is to develop tools to help with strategic decision-making and to plan the development of the company, in collaboration with the manager or the general management department. The financial management service is supervised by an administrative and financial director, commonly called CFO.
The Role of an Administrative and Financial Director (DAF) In A Company
The administrative and financial director (DAF) can also be called “financial director”. He plays a key role within the company since he works closely with the manager or the general management department. In general, the role of a CFO is to analyze and anticipate the strategic development of the company.
The Mission of the Financial Director
The financial director manages the administrative and financial department of the company, which can be made up of several employees. It is up to him to distribute the various missions that fall to his department among his staff and to bear the responsibility. The missions of the DAF and its department consist of:
- control the accounting of the company and the good management of its cash, or validate the profitability of the company
- develop decision support tools
- validate the company’s solvency, i.e. its ability to repay its debts
- anticipate business finances
- anticipating the company’s development strategy and the various investments and financing required; validate the strategy
- carry out a regulatory watch relating to the business sector of the company
- communicate with tax and social services
- possibly ensure legal and social permanence and participate in personnel administration
The Tasks of the Administrative and Financial Director
Certain missions must be specifically taken on by the DAF. For example, it is up to the administrative and financial director to represent the company during meetings and negotiations with the various financial partners or the administrations. He must also take part in meetings internal to general management and give his opinion on the company’s strategy. He works closely with the manager.
What Training to Become a Financial Director?
You can become a DAF with a DSCG (Higher Diploma in Accounting and Management). The training starts at Bac +3 level to acquire Bac +5 level. Students holding a Master’s degree at Bac +5 level relating to accounting professions (economics, finance, management, etc.) can also become CFOs. In any case, in general.
Carry out a regulatory watch relating to the business sector of the Procurement Software and Solutions KSA company.